Deutsche Bank analysts initiated shares of Lattice Semiconductor (LSCC) with a Buy rating in a note Thursday, assigning the stock a $70 per share price target.
The analysts said the firm initiated the bullish rating on the stock as the company is reprogrammed for growth.
"We see LSCC (~$8b market cap) as offering the rare combination of above-industry revenue growth alongside industry-leading gross margins (second only to NVDA & AVGO)," the analysts said.
"While in the near-term LSCC will not be immune from cyclical headwinds plaguing the broader semis industry (and we've consequently de-risked our near-term estimates as a result), we believe further downside to fundamentals is already priced into shares (LSCC shares down - 40% from peak, vs. peers -13%)," they added.
The analysts added that while most of the company's initial transformation work is complete, they believe a new era of growth for the company is still in its early innings. In addition, they said the current valuation level is at an attractive entry point and the risk-reward skews favorably.