
Allegro MicroSystems (ALGM) Stock Forecast & Price Target
Allegro MicroSystems (ALGM) Analyst Ratings
Bulls say
Allegro Microsystems anticipates expanding its profit margins as it shifts towards an asset-lite business model, which is expected to enhance financial performance. The company reported a significant improvement in demand, with bookings reaching their highest level in eight quarters and a year-over-year increase of 50%, indicating a robust market environment. Furthermore, Allegro is poised to capture greater market share in the automotive and industrial sectors due to its comprehensive product offerings, particularly in motor controllers and drivers, aligning with the growing demand for advanced driver-assistance systems and electric vehicles.
Bears say
Allegro Microsystems Inc. has provided guidance for F4Q25, indicating a miss on revenue expectations with projections of $185 million at the midpoint, reflecting a significant year-over-year decline of 23.1%. The company's gross margin is also anticipated to be lower than expected at 47%, compared to prior estimates, signaling potential pressures on profitability amidst increasing competition from larger market players. Additionally, a notable drop in automotive sales, particularly in E-Mobility, raises concerns about sustaining market share and overall financial performance moving forward.
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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