
MTSI Stock Forecast & Price Target
MTSI Analyst Ratings
Bulls say
MACOM Technology Solutions Holdings Inc. has demonstrated robust momentum in its Datacenter segment, with a remarkable 16% quarter-over-quarter and 32% year-over-year increase in sales, primarily driven by the adoption of optical solutions in 800G production. The company has seen a significant 9% sequential and 39% year-over-year revenue increase, reaching $218.1 million, alongside substantial growth in Telecom revenues due to the addition of Wolfspeed, indicating a diversified growth strategy. With favorable trends in design activity and a strengthening demand in both Datacom and Telecom sectors, MACOM is positioned for revenue growth that is expected to exceed 35% year-over-year performance in 2024.
Bears say
MACOM Technology Solutions Holdings Inc. faces several challenges that contribute to a negative outlook, including significant exposure to the declining China Metro Long Haul market, which has seen revenue contributions decrease from 15% to 10% between FY16 and FY17. The company has reported a third consecutive quarter with a book-to-bill ratio of 1.10 but has experienced recent headwinds in its data center segment due to capacity constraints and difficulties in transitioning product lines, adversely impacting gross margins. Additionally, the firm's hefty $668 million long-term debt, exacerbated by its $770 million acquisition of AMCC, coupled with potential manufacturing issues and weakening global demand for 5G infrastructure, heighten the risks associated with its financial stability and future earnings.
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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