Strong Buy Rating for MACOM Technology Solutions Holdings Driven by Robust Performance and Promising Growth Prospects

Analyst Quinn Bolton of Needham maintained a Buy rating on MACOM Technology Solutions Holdings (MTSI – Research Report), with a price target of $150.00.

Quinn Bolton has given his Buy rating due to a combination of factors that highlight MACOM Technology Solutions Holdings’ strong performance and promising future prospects. The company has reported results and guidance that surpassed expectations, with notable strength across all its segments. This positive performance is further supported by a consistent increase in bookings for five consecutive quarters, indicating robust demand.
Another key factor in Bolton’s rating is the growth in the Data Center segment, driven by the adoption of higher data rate platforms such as 100G per lane, 800G, and 1.6T. The momentum in LPO adoption following the ratification of the LPO standard also contributes to the optimistic outlook. Additionally, the potential ahead-of-schedule transfer of the Wolfspeed fab and the progress on the $55MM SATCOM contract, which is expected to ramp up in revenue and production in six months, further reinforce the positive sentiment.