
MTSI Stock Forecast & Price Target
MTSI Analyst Ratings
Bulls say
MACOM Technology Solutions Holdings Inc. has demonstrated robust revenue growth, evidenced by a 16% quarter-over-quarter and 32% year-over-year increase in Datacenter sales, driven primarily by the demand for optical solutions, including the production of 800G technology. Despite a slight decline in gross margins and an increase in operating expenses, the company achieved an improvement in operating margins, rising 20 basis points to 25.4%, indicating operational efficiency amidst challenges. Additionally, the positive outlook is further reinforced by a strong demand momentum anticipated in 2025, enhanced design activity across the Datacom sector, and expanding opportunities in Telecom, particularly within the satellite market, which reflects a healthy pipeline for continued growth.
Bears say
MACOM Technology Solutions Holdings Inc. faces significant risks that contribute to a negative outlook, primarily due to its exposure to the weakening global demand for 5G and data center equipment, alongside the challenges in ramping its optical integrated circuits. The company reported a decline in gross margins attributable to lower fabrication utilization, while also facing decreased visibility regarding demand changes related to its indirect exposure in the China market through telecom module makers. Furthermore, the heightened balance sheet risks stemming from a sizable acquisition, coupled with substantial long-term debt and execution risks associated with legacy platforms, further complicate its financial stability and growth potential.
This aggregate rating is based on analysts' research of MACOM Technology Solutions Holdings and is not a guaranteed prediction by Public.com or investment advice.
MTSI Analyst Forecast & Price Prediction
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