Lattice Semiconductor has been added to the PHLX Semiconductor Sector Index, placing the Oregon-based FPGA specialist alongside larger chip peers tracked closely by institutional investors. The index inclusion follows a sharp run in the share price this year, with a year-to-date share price return of 63.84% and a 1 month share price return of 15.38%, though the 3 month share price return declined 5.62%. Total shareholder return stands at 76.84% over 1 year and 95.21% over 5 years, with the stock at a US$128.86 level. The most followed valuation narrative pegs fair value at $164.92 per share, implying 22% undervaluation, with the Revenue Growth assumption raised from 27.91% to 44.99% and the Net Profit Margin edged down from 27.46% to 26.46%. However, the current P/S of 28.1x is more than 4x the US Semiconductor industry average of 7.2x and above an estimated fair ratio of 18x, pointing to valuation risk if sentiment cools, while rising competition in low and mid range FPGAs and any setback with the AMI acquisition could weaken confidence.
Lattice Semiconductor CorporationLattice was added to the PHLX Semiconductor Sector Index, an index-inclusion event, with the article also citing a $164.92 fair-value narrative implying 22% undervaluation.
