Semtech Shares Gain On Upbeat Analyst Report

NEW YORK (AP) — Shares of chip maker Semtech Corp. jumped Thursday after a Raymond James analyst affirmed his "Outperform" rating on the stock, saying the company is gaining market share and should post first-quarter results in line with Wall Street projections.

The analyst, J. Steven Smigie, said in a client note Thursday that Semtech is gaining more of the market for "protection" chips, which guard against power surges in electronic devices.

Smigie estimates the total market at $700 million to $1 billion and growing 5 percent to 10 percent a year. He said Semtech's protection segment makes up about 46 percent of the company's revenue.

The analyst said his checks indicate the Camarillo, Calif.-based company will meet Wall Street estimates for the first quarter of fiscal 2010, which ends for the company this month. Analysts polled by Thomson Reuters are expecting earnings of 11 cents per share on sales of $54.9 million.

Semtech shares gained 63 cents, or 4.5 percent, to $14.74 in afternoon trading.