Macom initiated with a Buy at Truist

Truist analyst William Stein initiated coverage of Macom (MTSI) with a Buy rating and $125 price target Macom is a consolidating leader in an attractive segment of the analog semiconductor industry, specifically radio frequency and similar components, with growing exposure to certain idiosyncratic growth drivers that should boost medium-term growth by 12%, including AI-linked datacenter communications, low-earth orbit satellites, and Gallium Nitride on Silicon Carbide technology, the analyst tells investors in a research note. Truist adds that cyclically depressed segments representing 25% of revenues are down 40% from the peak and are poised for a recovery.