Morgan Stanley raises target for Semtech stock to USD 205

Published on 10/20/2026 at 21:19 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Semtech raises third-quarter revenue guidance to USD 417.5 million at the midpoint. Semtech stock costs EUR 123.35 on October 20, 2026.

Morgan Stanley target and guidance

Morgan Stanley raised its Semtech target from USD 195 to USD 205 on October 16, 2026.
Third-quarter revenue guidance stands at USD 417.5 million at the midpoint.
Semtech stock costs EUR 123.35 at Lang & Schwarz on October 20, 2026 at 9:14 p.m. CEST.

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Morgan Stanley raised its Semtech target from USD 195 to USD 205 on October 16, 2026, while retaining an Equalweight rating, according to Investing.com. Semtech stock was trading at EUR 123.35 at Lang & Schwarz on October 20, 2026 at 9:14 p.m. CEST.

Guidance reaches USD 417.5 million

Semtech's third-quarter revenue guidance reached USD 417.5 million at the midpoint, up from USD 410.0 million, while adjusted earnings per share guidance rose to USD 1.14 from USD 1.05. Markets Insider reported the figures on October 16, 2026.

Data center growth remains central

The guidance sits alongside Semtech's fiscal second-quarter results. The company reported USD 341.9 million in net sales, a 54.5 percent non-GAAP gross margin and a 24.4 percent non-GAAP operating margin for fiscal second quarter 2027, according to Semtech Corporation.

Morgan Stanley said its USD 205 target was based on 28 times non-GAAP earnings per share of USD 7.31. The firm described data center growth, backlog visibility and photonics capacity as important elements of the longer-term case, while pointing to execution on active copper and newer optical architectures as risks.

Price position and valuation

On Nasdaq, Semtech was trading at USD 138.51 on October 20, 2026 at 3:18 p.m. EDT. The USD 205 Morgan Stanley target lies 48.00 percent above that primary-exchange price. Semtech's market capitalization stood at USD 12.9 billion, and its 52-week range was USD 60.28 to USD 201.99.

Peers frame the valuation

Broadcom was trading at USD 335.23 on October 20, 2026, with a price-to-earnings ratio of 42.82 and a market capitalization of USD 1.6 trillion. Marvell Technology stood at USD 241.62, with a price-to-earnings ratio of 79.94 and a market capitalization of USD 211.6 billion. Semtech's structured valuation remains closer to Marvell's than Broadcom's on this measure.

What the target means for Semtech

The target revision gives investors a concrete valuation marker while the guidance increase supplies the operating counterpoint. Semtech's fiscal second-quarter revenue of USD 341.9 million was below the new third-quarter midpoint, leaving the forecast dependent on sequential execution rather than a static annual comparison.

Semtech stock stays in a wide range

The stock's EUR 123.35 Lang & Schwarz price sits between its dated market range, while the USD 205 target remains below the latest 52-week high of USD 201.99 only when currencies are kept separate; no direct euro-to-dollar return comparison is appropriate. The key figures are the USD 417.5 million revenue midpoint and the USD 205 target, not a single market quotation.

The further course of trading is shown by the continuously updated real-time quote of Semtech stock.