In a report released today, Quinn Bolton from Needham maintained a Buy rating on MACOM Technology Solutions Holdings (MTSI – Research Report), with a price target of $150.00.
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Quinn Bolton has given his Buy rating due to a combination of factors highlighting MACOM Technology Solutions Holdings’ promising position in the market. A significant driver for this positive outlook is the strength observed in the Data Center sector, which has shown a notable quarter-over-quarter growth and is projected to maintain this momentum. The company is poised for continued expansion in this area, particularly with the anticipated growth in demand for their 800G and 1.6T solutions.
Despite some challenges related to gross margins due to underutilization issues at the Lowell fab and weak demand in certain sectors, the overall growth prospects, especially in Data Centers, are expected to outweigh these concerns. Additionally, the adoption of new technologies by major clients, such as NVDA, and an upward trend in satellite momentum with Low Earth Orbit (LEO) satellites, further strengthen the company’s growth potential. These factors collectively form the basis for Quinn Bolton’s Buy rating on MACOM Technology Solutions Holdings.
Based on the recent corporate insider activity of 97 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.