Analyst Quinn Bolton of Needham maintained a Buy rating on Allegro MicroSystems, boosting the price target to $37.00.
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Quinn Bolton has given his Buy rating due to a combination of factors that highlight Allegro MicroSystems’ strong performance and growth potential. The company has shown a slight increase in revenue and earnings per share, primarily driven by the automotive and industrial sectors. This growth is supported by improved orders, bookings, and backlog, indicating a positive cyclical recovery.
In particular, the automotive sector has benefited from a significant rise in E-mobility, with increasing dollar content in ADAS features. Additionally, the industrial sector has seen substantial growth, especially in strategic areas like data centers and robotics. The company’s financial outlook is further strengthened by favorable gross margin guidance, attributed to reduced costs. Consequently, Quinn Bolton has raised the price target for Allegro MicroSystems to $37, reflecting confidence in the company’s future performance.
In another report released today, Mizuho Securities also reiterated a Buy rating on the stock with a $40.00 price target.