
Allegro MicroSystems (ALGM) Stock Forecast & Price Target
Allegro MicroSystems (ALGM) Analyst Ratings
Bulls say
Allegro Microsystems is experiencing positive momentum in its financial performance, evidenced by a 20% quarter-over-quarter increase in bookings, marking the fifth consecutive rise and reaching two-year highs. Management indicates that this trend is the onset of an up-cycle, supported by declining customer and distributor inventories, increasing backlogs, and the emergence of select component shortages. Furthermore, the company anticipates margin expansion as it shifts towards an asset-light business model, reinforcing a favorable outlook for its financial future.
Bears say
Allegro Microsystems Inc. has faced ongoing challenges with gross margins (GMs), as price declines have disproportionately impacted revenue while outweighing any cost-saving measures from suppliers in the near term. The company's revenue and gross margin estimates have been revised downward, and only minimal operational expense cuts are partially compensating for these declines. Additionally, a shift in projected price-to-earnings ratios indicates a cautious outlook, reflecting lower earnings per share estimates for the upcoming fiscal year.
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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