The Lattice Semiconductor (LSCC) story continues to work, particularly with revenue accelerating nicely in the first quarter and management offering a credible outlook for mid-teens or better growth over the next three to four years. I have had my qualms about paying such a rich price for this stock (currently trading at around 15x expected 2021 revenue), but the shares have continued to outperform the broader semiconductor sector so far this year.
I know some investors were hoping for more operating margin leverage in management’s recent Analyst Day guidance, but I do think the company’s decision to continue investing in R&D and expand into the mid-range FPGA market is a good one for the long-term. I can’t, and won’t, defend the valuation, but I believe the underlying quality of the company and the growth story remain good.
Read more here:
Lattice Seeing Revenue Acceleration And Moving To Double Its Addressable Market
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