Allegro MicroSystems initiated with an Outperform at Evercore ISI

Evercore ISI analyst Mark Lipacis initiated coverage of Allegro MicroSystems with an Outperform rating and $36 price target. The stock is a top EV play, but the increased silicon content in ICE-based vehicles is also underappreciated by investors, making it one of the best growth stories in the analog/MCU complex, the analyst tells investors in a research note. The firm believes the company’s operating margins will expand 1,500bps over the next 5 years.