Allegro MicroSystems price target lowered to $34 from $36 at BofA

BofA lowered the firm’s price target on Allegro MicroSystems to $34 from $36 and keeps a Neutral rating on the shares. The firm sees a “tricky set-up” for semiconductor stocks heading into Q3 earnings season, though it calls Compute/AI the “best neighborhood.” Allegro has “strong positioning” across key secular trends, but the firm sees near-term risks related to inventory digestion, China and gross margin.