Allegro MicroSystems price target lowered to $25 from $32 at Barclays

Barclays analyst Tom O’Malley lowered the firm’s price target on Allegro MicroSystems (ALGM) to $25 from $32 and keeps an Overweight rating on the shares. The company’s September revenue came in line with a pull-in of the Industrial business in China, the analyst tells investors in a research note. The firm says prolonged inventory digestion in Auto and a moderated outlook lead to a few hundred million cut to the Street’s fiscal 2026 numbers, which is “another warning sign for broader Auto names.” It sees this cut as likely the bottom for Allegro, and when combined with the underperformance of the shares, Barclays thinks investors “may look to come back to this name first given numbers now seem largely de-risked.”