10:50 AM EDT, 05/27/2026 (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 raise our 12-month target to $200 from $140, on a P/E of about 57x our CY 27 EPS, above peers and historical average to reflect growth prospects. We up our FY 27 EPS estimate to $2.45 from $2.20 and FY 28's to $3.49 from $2.90. After posting Apr-Q results and Jul-Q guide that exceeded our views, we believe that SMTC is capitalizing on the AI-driven data center buildout. SMTC's Active Copper Cables (ACC) are gaining traction as a low-power, low-latency alternative for short-reach connections, with its 1.6T CopperEdge ICs serving as a major growth driver, while Linear Pluggable Optics (LPO) revenue is expected to accelerate as hyperscalers adopt the technology for power savings. We believe SMTC's strong design win momentum and bookings for 1.6T optical transceivers, ramping in the second half, along with early development of 3.2T solutions, demonstrate its competitive positioning in next-generation data center infrastructure. We see upside from LoRa enabling Edge AI applications with higher data throughput.