Analyst Joseph Quatrochi of Wells Fargo maintained a Hold rating on Monolithic Power (MPWR – Research Report), retaining the price target of $710.00.
Joseph Quatrochi’s rating is based on Monolithic Power’s updated financial targets, which suggest a more conservative growth outlook compared to previous projections. The company aims to surpass market revenue growth by 10%-15%, a reduction from the earlier target of over 20% growth. This adjustment reflects a more cautious approach in light of the company’s historical performance and current market conditions.
Additionally, Monolithic Power’s gross margin targets remain relatively stable, aiming for a range of 55%-60%, which is consistent with past performance. The company’s operating expenses are projected to grow at a higher rate relative to revenue, potentially impacting profitability. Furthermore, the capital allocation strategy indicates a shift towards a more balanced approach, with a focus on maintaining shareholder returns through share repurchases. These factors collectively contribute to the Hold rating, as they suggest a steady but not overly aggressive growth trajectory.
Quatrochi covers the Technology sector, focusing on stocks such as ON Semiconductor, Synopsys, and ARM Holdings PLC ADR. According to TipRanks, Quatrochi has an average return of 14.3% and a 55.04% success rate on recommended stocks.