Loop Capital Upgrades Monolithic Power Systems (MPWR) to Buy Post Selloff, 'All things considered, we feel confident in the FY25 consensus revenue forecast of $2.66'

Loop Capital analyst Gary Mobley upgraded Monolithic Power Systems (NASDAQ: MPWR) from Hold to Buy with a price target of $660.00.

The analyst comments "We are taking the opportunity to up our rating to Buy from Hold. Our PT remains $660. The upgrade follows an ^10% sell-off in the week since our coverage launch on 11/11/24. Additionally, shares are off ^40% from the 52-wk high. The share pressure has been triggered by. 1) Investors coming to the realization MPWR may not retain 100% PMIC market share with NVDA's Ai GPU systems; and 2) the lumpiness in NVDA's orders have created an L shaped pattern in MPWR's 2H FY24 Enterprise Data revenue (although estimates recently increased for MPWR due to resurgence in non Enterprise Data segments). We believe these concerns are overblown. All things considered, we feel confident in the FY25 consensus revenue forecast of $2.66, and we believe NVDA's Enterprise Data segment should be accretive to the 20% growth assumed in consensus rev forecasts (NOTE: Enterprise Data growth may be more so fueled by Al ASICs and AMD M3xx).

For an analyst ratings summary and ratings history on Monolithic Power Systems click here. For more ratings news on Monolithic Power Systems click here.

Shares of Monolithic Power Systems closed at $573.38 yesterday.

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