On Tuesday, Stifel, a financial services firm, upgraded the stock of Lattice (OTC:LTTC) Semiconductor (NASDAQ:LSCC) from Hold to Buy, setting a price target of $55.00. This change in rating comes as the company announced the immediate appointment of Dr. Ford (NYSE:F) Tamer as its new CEO and member of the Board. Dr. Tamer succeeds Esam Elashmawi, who had been serving as the interim CEO and will now continue his role as LSCC's Chief Strategy and Marketing Officer, a position he has held since 2018.
The appointment of Dr. Tamer is seen in a positive light by the market due to his extensive industry experience and a proven track record in developing successful semiconductor and components businesses. The transition in leadership is expected to bring a fresh perspective to Lattice Semiconductor's operations and strategy.
In addition to the leadership update, Lattice Semiconductor has reaffirmed its third-quarter guidance, which anticipates modest sequential revenue growth. This forecast follows a period of three consecutive quarters where the company experienced double-digit quarter-over-quarter declines. The modest growth is projected to extend into the December quarter as well.
Stifel's upgrade reflects a sentiment that the worst of the current downturn may be over for Lattice Semiconductor. The firm notes that recent underperformance in the company's share price seems to already account for reset expectations, indicating a potential upside for investors with the new leadership and steady guidance.
In other recent news, Lattice Semiconductor has announced the appointment of Dr. Ford Tamer as its new CEO, succeeding interim CEO Esam Elashmawi. This comes after the company reported an earnings per share of $0.23, falling short of the expected $0.24 consensus. The company's sales also decreased by 35% year over year, particularly in the industrial and automotive sectors. Despite these challenges, the company's gross margin held steady at 69%.
In response to these developments, several firms including Raymond James, Needham, TD Cowen, CFRA, and Stifel have adjusted their outlooks for Lattice Semiconductor. Raymond James upgraded the company's rating to Outperform, while Needham and TD Cowen maintained a Buy rating but reduced their price targets. CFRA and Stifel also revised their price targets and maintained a Hold rating.
These are recent developments for Lattice Semiconductor, which continues to navigate through a period of CEO uncertainty and broader economic challenges. The company has launched new products like the Lattice MachXO5D-NX and the Lattice Sentry solution stack, which are expected to contribute to future growth. Analysts from firms such as Needham and CFRA anticipate improvements in the second half of the year, driven by ongoing inventory normalization and new product introductions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.