Piper Sandler downgrades Macom to Neutral on valuation

As previously reported, Piper Sandler analyst Harsh Kumar downgraded Macom to Neutral from Overweight with an $85 price target, citing valuation. Macom’s fundamentals remain intact in the firm’s view. However, Piper feels the stock has run its course for now and valuation puts it on the sidelines. While the company faces the same headwinds as the rest of the analog space, the firm maintains that its end markets are more niche with a skew towards defense applications, which Piper expects to hold up this year.