By Sam Boughedda
Lattice Semiconductor Corporation (NASDAQ:LSCC) shares rallied more than 8% on Tuesday after the company topped earnings and revenue expectations.
The semiconductor firm posted earnings of $0.49 per share on revenue of $175.96 million, better than the analyst consensus expectations of $0.48 per share on revenue of $175.2M.
Wall Street analysts were encouraged by the report with Jefferies, Cowen, Rosenblatt, Benchmark, Susquehanna, Stifel, and KeyBanc raising their price targets on the stock.
Rosenblatt Securities analysts raised the price target on LSCC to $110 from $95 per share, maintaining a Buy rating. They told investors in a research note that "Lattice delivered for 4Q22 and beat on the guide for 1Q23 on strong industrial/automotive and consistent communications/compute market and share/content gains."
"Remarkably, Lattice has managed to sidestep the cyclical headwinds most semi players have witnessed over the past year on proper channel/customer management, share gains, price management and most importantly small/mid FPGA innovation in the era of AI inference," the analysts added.
Susquehanna analysts lifted his firm's price target on LSCC to $95 from $75, keeping a Positive rating on the stock.
"Lattice (once again) posted better than expected results and guidance, primarily on better Industrial & Auto," said the analysts. "For Industrial, Lattice benefited from next-gen Industrial applications like machine vision, automation, and robotics. Auto grew faster than +42% YOY, as they benefited from infotainment, ADAS, and sensor aggregation. For Compute, management suggested near-term weakness for both PC and Server, but they continue to ramp content into new server designs (FPGA attach rate >1 per server) and should further benefit from the ramps in both Sapphire Rapids and Genoa."
They noted that while the PC market remains soft, Lattice benefits from new PC designs with innovative applications like privacy screens (Mirametrix), attention sensing, and over-the-shoulder screen detection.
"Overall, it was another fine quarter from Lattice in an otherwise challenging environment for most," they concluded.