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Lattice Semiconductor Stock Set for New Highs After Earnings

Lattice Semiconductor beat on both the top and bottom lines

Jul 31, 2019 at 9:27 AM
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Lattice Semiconductor Corp (NASDAQ:LSCC) stock is up 12.3% in electronic trading, after the programmable logic device maker reported second-quarter adjusted earnings of 15 cents per share on $102.30 million in revenue. This was more than the consensus estimates of 11 cents per share in earnings and $99.72 million in revenue, and bullish analysts have been quick to chime in.

In fact, six brokerages have already boosted their LSCC price targets, with Cowen and Company and Rosenblatt Securities setting the highest bar at $21 -- a nearly 28% premium to last night's close at $16.41. Analysts are already upbeat on LSCC, with all five in coverage maintaining a "buy" or better rating; however, more price-target hikes could come down the pike, considering the 12-month consensus target sits at $17.86.

Today's earnings reaction is likely to catch some short sellers off guard, though. Short interest surged 22.9% in the most recent reporting period to 6.63 million shares -- the most since late 2016. This represents a healthy 5.4% of LSCC stock's available float, or 3.6 times the average daily pace of trading. A capitulation from some of the weaker bearish hands could create bigger tailwinds for Lattice Semiconductor shares.

Looking at the charts, the chip stock has put in a strong performance over the long term, and has more than doubled in value through last night's close. LSCC shares hit a 17-year high of $17.07 on July 15, but looks set to take out this milestone today -- poised to open near the $18.15 per share region.

 

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