
Allegro MicroSystems (ALGM) Stock Forecast & Price Target
Allegro MicroSystems (ALGM) Analyst Ratings
Bulls say
Allegro Microsystems has demonstrated significant positive trends in its financials, with a 20% quarter-over-quarter increase in bookings, marking the fifth consecutive rise and reaching two-year highs. Management anticipates that declining customer and distributor inventories, along with an increasing backlog and emerging component shortages, signal the onset of a market up-cycle. Additionally, the company's transition to an asset-lite model is expected to further enhance profit margins, contributing to a favorable financial outlook.
Bears say
Allegro Microsystems has experienced persistent declines in gross margins due to price decreases that have surpassed short-term supplier cost reductions, impacting profitability. Revenue and gross margin estimates have been revised downward, despite minor operational expense cuts only providing slight relief. Additionally, the shifting product mix and underabsorption issues further exacerbate the challenges, leading to a conservative outlook on the company's financial performance.
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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