In a report released yesterday, Joshua Buchalter from TD Cowen maintained a Buy rating on Allegro MicroSystems, with a price target of $55.00.
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Joshua Buchalter has given his Buy rating due to a combination of factors tied to Allegro MicroSystems’ structural growth story, rather than near‑term optical comparisons. He highlights that while recent quarterly revenue growth and margins appeared modest against some peers, results were clean, aligned with seasonal patterns, and supported by a broader design funnel that reinforces confidence in the company’s trajectory.
He emphasizes Allegro’s expanding auto and data center content, including strong design momentum in current sensing and gate drivers, as key drivers for accelerating growth into FY27–FY28. Buchalter also notes that cost efficiencies, potential pricing actions, and improving back-end utilization should support margin expansion over time, and he raises the price target from $45 to $55 to reflect the longer-term upside he sees from Allegro’s leading positions in ADAS, xEV, and data center applications.
Buchalter covers the Technology sector, focusing on stocks such as Infineon Technologies AG, STMicroelectronics, and Advanced Micro Devices. According to TipRanks, Buchalter has an average return of 36.5% and a 69.46% success rate on recommended stocks.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $62.00 price target.