06:45 AM EDT, 06/06/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We boost our 12-month target to $46 from $32 on higher revised P/E of 30x our CY 25 EPS view, above historical to reflect trough fundamentals. We keep our FY 25 (Jan.) EPS view at $0.65 and FY 26 at $1.52. SMTC posts Apr-Q EPS of $0.06 vs. $0.04, better than the breakeven consensus view. Sales fell 13% but rose 6.8% sequentially (guide implies another 3% seq. rise), with improvement across the Signal Integrity (+36% from Jan-Q) and Analog Mixed Signal & Wireless (+25%) segments while IoT System & Connectivity remained weak (-19%). Although Jun-Q guide was somewhat mixed, we are encouraged by SMTC's ability to reduce its operating costs (-17% Y/Y) and sharp declines in channel inventories. We see upside to both revenue/margins as orders rebound in the second half, but visibility around the trajectory of a recovery remains low. Data center sales (copper and optical related) will benefit from the rising demand for AI workloads, while peers have implied that industrial orders (-5% seq. and -34% Y/Y) are bottoming.