What Happened:
Shares of Semiconductor company Semtech (NASDAQ:SMTC) jumped up 5.87% in the morning session after B. Riley Securities analyst Craig Ellis upgraded the stock's rating from Neutral to Buy and raised the price target from $34 to $52. The target price implies a 56% upside to the current price.
What is the market telling us:
Semtech's shares are quite volatile and over the last year have had 21 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Semtech is up 10.6% since the beginning of the year, but at $32 per share it is still trading more than 50% below its 52-week high of $72.88 from March 2022. Investors who bought $1,000 worth of Semtech's shares 5 years ago would now be looking at an investment worth $785.3.
Is now the time to buy Semtech? Access our full analysis of the earnings results here, it's free.