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Monolithic Power’s Mixed Revenue Dynamics and Investor Sentiment Lead to Hold Rating

Monolithic Power’s Mixed Revenue Dynamics and Investor Sentiment Lead to Hold Rating

Analyst Joseph Quatrochi from Wells Fargo maintained a Hold rating on Monolithic Power (MPWRResearch Report) and increased the price target to $710.00 from $610.00.

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Joseph Quatrochi has given his Hold rating due to a combination of factors influencing Monolithic Power’s current market position. The company’s guidance for the first quarter of 2025 exceeded expectations, but it was primarily buoyed by strengths in other market segments counterbalancing a notable weakness in enterprise data revenue. While the flat outlook for enterprise data revenue in 2025 is seen as a de-risked opportunity by some investors, others are concerned about the reliance on other markets to compensate for this shortfall.
In addition, the anticipated revenue growth dynamics between the first and second half of the year add a layer of complexity, with significant attention on the quarterly cadence of enterprise data revenue. The firm has demonstrated strong performance in areas such as automotive and communications, but the divided sentiment among investors alongside the mixed dynamics in revenue expectations contributes to the Hold rating. Quatrochi’s analysis reflects these uncertainties, suggesting that while there are growth opportunities, there are also challenges that need to be navigated carefully.

In another report released yesterday, Rosenblatt Securities also reiterated a Hold rating on the stock with a $880.00 price target.

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