
Allegro MicroSystems (ALGM) Stock Forecast & Price Target
Allegro MicroSystems (ALGM) Analyst Ratings
Bulls say
Allegro Microsystems Inc. is positioned for a positive outlook due to a significant increase in bookings, which reached their highest levels in eight quarters, demonstrating a year-over-year growth of 50% in F3Q25, along with a reduction in cancellations. The company anticipates gaining market share in the automotive and industrial sectors as demand for its full-solution offerings in motor controllers and drivers aligns with the rising adoption of advanced driver-assistance systems (ADAS) and electric vehicles (xEV). Furthermore, Allegro's strategy to expand margins through an asset-lite model, combined with improving inventory levels among original equipment manufacturers (OEMs), suggests an overall favorable demand environment.
Bears say
Allegro Microsystems Inc. has indicated a negative outlook due to a projected revenue guidance of $185.0 million for F4Q25, representing a significant year-over-year decline of 23.1%, which falls short of both internal and street estimates. The company's automotive sales, totaling $130 million, have decreased by 8.3% quarter-over-quarter, while E-Mobility sales, accounting for 48% of automotive sales, have experienced a decline of 12.0% quarter-over-quarter. Furthermore, the anticipated gross margin for F4Q25 is forecasted at 47%, substantially below previous estimates, indicating overall weakness in profitability that could be exacerbated by increasing competition in the market.
This aggregate rating is based on analysts' research of Allegro MicroSystems and is not a guaranteed prediction by Public.com or investment advice.
Allegro MicroSystems (ALGM) Analyst Forecast & Price Prediction
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