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Semtech's LoRa Technology Adoption Expands With Helium Deal

Zacks Equity Research

Semtech Corporation SMTC recently partnered with Helium to develop a network based on the LoRa technology in North America.

Helium Inc. is an Internet of Things (IoT) developer platform founded in 2013.

Helium had made its network available late last year to more than 700 cities. The company has now made its network fully compatible with Semtech’s LoRa wide area network (LoRaWAN) protocol.

In order to use the Helium network, users need to deploy a Helium Hotspot device that will allow them to operate a wireless network for IoT.

The LoRa Technology enables long-range connectivity of IoT devices and aids in connecting sensors to the cloud. Its long-range performance and low power consumption requirement enhance overall performance. Moreover, this technology helps in real-time communication of data and analytics to enhance efficiency, as well as productivity.

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Semtech is witnessing growing strategic alliance and contracts, thanks to cost-efficient abilities of the LoRa technology in creating as well as deploying IoT solutions.

Consequently, the move is likely to boost the adoption rate of the company’s LoRa technology in the United States, which in turn will drive the top line.

Semtech Corporation Price and Consensus

 

Semtech Corporation Price and Consensus
Semtech Corporation Price and Consensus

Semtech Corporation price-consensus-chart | Semtech Corporation Quote

IoT Market’s Prospects

IoT devices have been gaining significant traction in recent times. These devices 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 many countries. It 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.

We believe Semtech is well poised to rapidly penetrate into the expanding IoT market, aided by the highly popular LoRa technology.

Zacks Rank & Stocks to Consider

Currently, Semtech carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector include Stamps.com Inc. STMP, eBay Inc. EBAY and Atlassian Corp. TEAM. While Stamps.com and eBay sport a Zacks Rank #1 (Strong Buy), Atlassian carries 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 Stamps.com, Atlassian Corp. and eBay is currently projected at 15%, 22.3% and 11.25%, respectively.

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eBay Inc. (EBAY) : Free Stock Analysis Report
 
Semtech Corporation (SMTC) : Free Stock Analysis Report
 
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Stamps.com Inc. (STMP) : Free Stock Analysis Report
 
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