Semtech (SMTC) Stock May Be Overvalued On Its 7x Three Year Run

Semtech has delivered a striking multi year share price run, and the question now is whether the current US$169.33 level is supported by what the business actually earns. With the spotlight firmly on its profit engine, the issue is how much of that past share price performance can be tied back to the company’s earnings power rather than sentiment alone. Over roughly three years the stock has logged a very large 3 year return of about 7x, which puts real pressure on the earnings story to...