TD Cowen analyst Joshua Buchalter maintained a Buy rating on Allegro MicroSystems yesterday and set a price target of $37.00.
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Joshua Buchalter has given his Buy rating due to a combination of factors that indicate a positive outlook for Allegro MicroSystems. Despite a recent decline in stock price following a strong performance since April, the company’s fundamentals remain solid. The demand and inventory situation is gradually improving, with robust design activity suggesting long-term growth potential.
Allegro’s performance in the automotive sector, particularly with e-mobility and xEV applications, is noteworthy, as are its achievements in the industrial sector with design wins in robotics and automation. The company’s geographical performance is strong in China, although Europe is slightly lagging. Overall, while the recovery may be slower than some anticipated, the fundamentals are aligning well with the company’s target model, justifying the Buy rating.
Buchalter covers the Technology sector, focusing on stocks such as Analog Devices, Advanced Micro Devices, and Texas Instruments. According to TipRanks, Buchalter has an average return of 8.4% and a 53.89% success rate on recommended stocks.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $40.00 price target.