MACOM: Strengthening Data Center and Telecom Growth Underpins Buy Rating and $250 Target

Analyst Quinn Bolton of Needham maintained a Buy rating on MACOM Technology Solutions Holdings, boosting the price target to $250.00.

Quinn Bolton has given his Buy rating due to a combination of factors that underscore MACOM’s improving growth outlook and attractive long-term positioning. He highlights that management now expects data center revenue to expand by roughly 35–40% year over year, up from prior guidance of about 20%, supported by the transition to 1.6T solutions expected in 2026 and ongoing customer traction in LPO products across three different clients. He also notes that management still sees room for further upside to these data center growth expectations, which strengthens the case for sustained revenue acceleration.

In addition, Bolton points to potential outperformance in the telecom segment, driven by low-earth-orbit (LEO) opportunities and continued momentum in the company’s 5G portfolio. He underscores that renewed customer interest in linear equalizers for active copper cable and backplane use cases adds another incremental growth driver. Based on this multi-pronged demand backdrop, he maintains a 12‑month price target of $250, derived from applying a 40x multiple to his FY28 non-GAAP EPS estimate of $6.25, which in his view justifies a Buy recommendation on the shares.

In another report released today, Evercore ISI also reiterated a Buy rating on the stock with a $275.00 price target.

Based on the recent corporate insider activity of 103 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MTSI in relation to earlier this year.