TD Cowen analyst Joshua Buchalter maintained a Buy rating on Allegro MicroSystems yesterday and set a price target of $45.00.
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Joshua Buchalter has given his Buy rating due to a combination of factors that highlight Allegro MicroSystems’ strong near-term execution and improving long-term outlook. The company delivered revenue and guidance ahead of market expectations, with solid momentum in both automotive and industrial segments and bookings/backlog at the highest levels seen in several quarters. Data center revenue has now reached about 10% of total sales, driven by growing demand for fan driver and current sensing ICs, and is expected to counterbalance seasonal softness in China automotive demand. At the same time, gross margins are trending upward and are guided to improve further, reflecting better pricing and product mix than previously assumed.
Buchalter covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Allegro MicroSystems, and Texas Instruments. According to TipRanks, Buchalter has an average return of 19.2% and a 63.94% success rate on recommended stocks.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $44.00 price target.