Analyst Quinn Bolton from Needham maintained a Buy rating on Monolithic Power and increased the price target to $1,025.00 from $820.00.
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Quinn Bolton has given his Buy rating due to a combination of factors that indicate strong future growth for Monolithic Power Systems. The company is seeing diversified growth across various end markets, supported by multiple product and customer ramps that are expected to drive Enterprise Data growth in the latter half of 2025 and into 2026. Additionally, Monolithic Power has made advancements in high voltage direct current racks and high-speed optical modules, which are contributing to growth in the Communications sector.
Furthermore, the Automotive sector is anticipated to benefit from a series of new product launches, while the Compute and Storage segments show strength that is not linked to tariff-related pull-ins. Reflecting these positive developments, Bolton has introduced a financial model projecting significant revenue and earnings growth through 2030. This optimistic outlook is further supported by a raised price target of $1,025, based on a discounted cash flow valuation model with a terminal P/E multiple of 35x on 2030 earnings and a 10% discount rate.
According to TipRanks, Bolton is a top 100 analyst with an average return of 32.7% and a 59.12% success rate. Bolton covers the Technology sector, focusing on stocks such as IonQ, Lattice Semiconductor, and Marvell.
In another report released on September 16, TD Cowen also maintained a Buy rating on the stock with a $840.00 price target.