Lattice Semiconductor Stock

December 26, 2016
Lattice Semiconductor Rallies

NEW YORK (TheStreet) - Lattice Semiconductor (LSCC - Get Report ) stock is advancing by 7.40% to $6.75 on heavy volume in afternoon trading on Tuesday, after Intel (INTC) completed its $16.7 billion acquisition of chip maker Altera (ALTR) yesterday.

The transaction could boost Lattice's total addressable market by $300 million to $400 million, CEO Darin Billerbeck told Reuters earlier this year.

"I think within communications and the industrial, we'll see some of the benefit right away, " he said.

The acquisition allows Lattice and rival Xilinx (XLNX) to take a larger portion of the ARM-based market, as Intel and Altera's combined company will likely focus on providing chips for x86 rather than ARM-based processors, Reuters reported.

Additionally, as of June Lattice was at the top of FBR Capital Markets's list for financially attractive deals, Barron's reported.

Lattice is one of a few standalone programmable-chip makers remaining in the industry, and might be open to a sale. "If someone walks in the door and gives us a solid offer at a high premium we are going to consider it, " Billerbeck told Reuters at the time.

Yesterday, Intel indicated that Altera will serve as a model for future acquisitions.

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate LATTICE SEMICONDUCTOR CORP as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

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