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Allegro MicroSystems initiated with a Buy at UBS

UBS analyst Timothy Arcuri initiated coverage of Allegro MicroSystems with a Buy rating and $33 price target. The Street appears to be underestimating the cyclical recovery ahead for the company as estimates seem to bake in no pricing or share gain potential, the analyst tells investors in a research note. The firm says Allegro’s autos revenue appears among the most de-risked in the entire analog universe.

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