KeyBanc on Wednesday raised its price target on Lattice Semiconductor to $125.00 from $95.00 while retaining an Overweight rating on the shares. That new target implies meaningful upside from Lattice's current trading level of $90.95, which is only about 0.99% below the stock's 52-week high of $91.46.
The brokerage's move follows the company's fourth-quarter 2025 results and first-quarter 2026 guidance, which KeyBanc characterized as "slightly better" than expectations. KeyBanc singled out the Communications and Computing - abbreviated C&C - business as the primary driver of the improvement.
Key metrics highlighted by KeyBanc include a 60% year-over-year increase for the C&C segment in the fourth quarter, and an 85% year-over-year rise in the company's server business in 2025. By contrast, Lattice's Industrial and Automotive segment - I&A - fell 10% year-over-year over the same period.
Management's guidance underpinned the bullish tone from KeyBanc. Lattice guided the C&C segment to grow by more than 40% in 2026, while the I&A segment is expected to expand by more than 15%. The company signaled that 2026 revenues are expected to exceed its prior framework of 20%+ growth, and that current design wins support multi-year growth of 25%+ through 2028.
KeyBanc also pointed to improved compute expectations driven by growing FPGA content. The firm noted server attach rates are expected to increase from roughly 2x per server in 2025 to more than 3x in 2026. Server unit forecasts were cited as rising from about 15.3 million units to approximately 16.5 million, while average selling prices were noted to climb from around $3 to more than $4.
While analyst consensus remains strongly bullish and includes a high target of $135, a separate fair-value assessment suggests the shares may be significantly overvalued. The company’s Q4 financial results provide additional context for both perspectives.
For the fourth quarter of 2025, Lattice reported revenue of $145.8 million, a 24.2% year-over-year increase, and delivered earnings per share of $0.32, which matched analysts' expectations. Revenue slightly exceeded the forecast of $143.18 million.
Following the quarterly report, other brokerages adjusted their targets upward as well. Needham raised its price objective to $110 and maintained a Buy rating, citing the company's strong outlook and better-than-expected guidance for the first quarter of 2026. Rosenblatt Securities also lifted its target to $105 and kept a Buy rating, pointing to stronger-than-expected revenue from data centers and physical AI applications. Both firms expect accelerated growth for Lattice in the upcoming quarter.
Overall, KeyBanc's revision reflects the firm's view that Lattice's C&C momentum and improving compute dynamics - including higher server attach rates, growing server unit forecasts, and rising average selling prices - create a stronger growth profile for the company across 2026 and beyond.