Allegro MicroSystems upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Allegro MicroSystems (ALGM) to Overweight from Equal Weight with a $51 price target The firm says the company “sits at the intersection of cyclical recovery and durable secular growth.” Allegro’s rising content across both electric vehicles and internal combustion engine platforms supports sustained outgrowth relative to peers in 2026 and 2027, the analyst tells investors in a research note. Morgan Stanley now sees a clearer path to gross margin expansion as Allegro’s auto and industrial volumes recover.