Yahoo Finance Semtech's (SMTC) Lora Technology to be Deployed by Wilhelmsen
Semtech Corporation SMTC recently partnered with Wilhelmsen and The Things Industries (TTI) in a bid to boost the adoption rate of the company’s LoRa technology.
Per the deal, Wilhelmsen will deploy Semtech’s LoRadevices to offer reliable, efficient and robust IoT solutions to customers in the maritime shipping industry.
Founded in 1861, Wilhelmsen is a global maritime industry group and a maritime market leader. It serves 20,000 vessels out of 2,200 ports in almost 70 countries. Additionally, the company handles more than 220,000 product deliveries in a year.
Per a report from ResearchAndMarkets.com, the global maritime shipping industry is expected to register a CAGR of 16.8% from 2019 to 2024. Increased use of sensors, network devices, and digital communication channels, along with advanced technical know-how have increased the application of analytics in the maritime industry.
Notably, LoRa-based wireless sensors will aid the company in monitoring the condition of machinery, fuel efficiency, environmental metrics and cargo, among others, thereby saving time, increasing efficiency and reducing defaults.
Consequently, strong market growth in the maritime industry is likely to expand the LoRa technology ecosystem, which in turn will drive Semtech’s top line.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Partnerships Play a Key Role
Semtech is witnessing growing strategic alliance and contracts, thanks to cost-efficient abilities of LoRa technology in creating as well as deploying IoT solutions.
In addition to the current deal, the company recently joined forces with Continental Automated Buildings Association 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, the technology has been selected to be used in Brazil’s network, which is based on the LoRaWAN protocol that is deployed by American Tower. Moreover, Lemonbeat adopted the 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 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 more than 50 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.
Notably, Semtech is well poised to cater to 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 MACOM Technology Solutions Holdings, Inc. MTSI, Itron, Inc. ITRI and AMETEK, Inc. AME, 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 MACOM Technology, Itron and AMETEK is currently projected at 15%, 25% and 10.9%, respectively.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Semtech Corporation (SMTC) : Free Stock Analysis Report
MACOM Technology Solutions Holdings, Inc. (MTSI) : Free Stock Analysis Report
Itron, Inc. (ITRI) : Free Stock Analysis Report
AMETEK, Inc. (AME) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
