As previously reported, BofA analyst Vivek Arya reinstated coverage of Allegro MicroSystems (ALGM) with a Buy rating and $38 price target calling the company out as the “leader” in producing magnetic sensors critical to the operation of electric vehicles and safety-focused advanced driver assist systems. While auto demand is subdued near-term, Allegro is also poised to gain from emerging opportunities in power management chips for data centers and clean energy and the firm thinks a near-to-medium term cyclical recovery may help drive industry-leading sales and pro-forma EPS growth, the analyst tells investors.
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