TD Cowen analyst Joshua Buchalter maintained a Buy rating on Allegro MicroSystems yesterday and set a price target of $35.00.
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Joshua Buchalter has given his Buy rating due to a combination of factors that highlight Allegro MicroSystems’ strong performance and growth potential. The company reported a solid quarter with results surpassing consensus expectations, particularly driven by momentum in its automotive sector. This was complemented by an increase in gross margins and a favorable outlook for the upcoming quarter, which are seen as positive indicators amidst broader market concerns.
Furthermore, Allegro’s fundamentals appear robust, with a book-to-bill ratio above one, a growing backlog, and active design engagements, especially in the e-mobility and datacenter sectors. The company’s advancements in areas like ADAS and current sensing for electric vehicles, along with innovations in datacenter power architectures, are expected to contribute to its long-term growth. These elements, combined with the anticipation of consistent double-digit growth and margin expansion, underpin the Buy rating and the increased price target of $35.
According to TipRanks, Buchalter is a 5-star analyst with an average return of 15.0% and a 58.67% success rate. Buchalter covers the Technology sector, focusing on stocks such as Allegro MicroSystems, Marvell, and Credo Technology Group Holding Ltd.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $40.00 price target.