Semtech Corporation SMTC recently announced that the company’s Low power, high Range (LoRa) devices and wireless radio frequency technology will be deployed by Skysens Teknoloji AS. (Skysens) into its smart asset tracking solutions for Istanbul Airport.
The technology will allow users to oversee an asset’s current condition, location and operational status, among others. This will help Skysens to effectively monitor data, thereby reducing operational cost and improving airport safety.
Skysens is a provider of Internet of Things (IoT) solutions based on the LoRaWAN protocol.
The LoRa Technology enables long-range connectivity of Internet of Things (IoT) devices and aids in connecting sensors to the cloud. Its long range performance and low power consumption requirement enhance the overall performance of smart meters. Moreover, this technology helps in real-time communication of data and analytics to enhance efficiency and productivity.
Consequently, the move is likely to boost the adoption rate of the company’s LoRa technology in the asset tracking market, which in turn will drive the top line.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Partnerships Plays a Key Role
Semtech is witnessing growing strategic alliance and contracts, thanks to cost-efficient abilities of LoRa technology in creating and deploying IoT solutions.
Apart from the current deal, the company recently joined forces with Continental Automated Buildings Association (CABA) to enhance and innovate the latter’s portfolio of smart home and building technologies.
Additionally, per a deal between Ineo-Sense and Lauak Group, the former will provide LoRa-enabled asset tracking sensors that will be integrated into the latter’s manufacturing containers.
Further, it has been selected to be used in Brazil’s network, which is based on the LoRaWAN protocol, deployed by American Tower (ATC). Moreover, Lemonbeat has adopted LoRa technology to enhance smart metering solutions.
We believe Semtech is well poised to rapidly penetrate into the expanding IoT market, aided by the highly popular LoRa technology.
IoT Market Growth Prospects
Internet of Things (IoT) devices have been gaining significant traction in recent times. These have been successful in making an impact across all end markets served by the company.
Per IOT Analytics, the number of active IoT devices is expected to grow from 7 billion in 2018 to 10 billion and 22 billion by 2020 and 2025, respectively, including devices on the consumer and enterprise side.
Presently, LoRaWAN networks are operating in more than 50 countries. The company expects the LoRaWAN open protocol to reach more countries in the near term. Industry experts expect four out of every 10 long-range IoT connections to be powered by LPWAN, with LoRaWAN being the dominant player.
Semtech is well poised to cater to the growing demand in this domain on the back of robust product portfolio and strong IoT capabilities.
Zacks Rank & Stocks to Consider
Currently, Semtech carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Itron, Inc. ITRI, Teradyne, Inc. TER and AXT, Inc. AXTI, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Itron, Teradyne and AXT is currently projected at 25%, 9.8% and 15%, respectively.
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