StoneX Reiterates Buy Rating on Allegro MicroSystems (ALGM), Says Weakness a Buying Opportunity

StoneX analyst Gary Mobley reiterated a Buy rating and $60.00 price target on Allegro MicroSystems (NASDAQ: ALGM).

The analyst commented, "To put it most succinctly, the share price appears to embed a reduction in estimates, which we do not see in the cards for ALGM (NOTE: shares down >50% from 52-wk high; val near low point of 5-yr range). With expectations this low, we suspect shares could rally following the Oct 29 earnings report, even on in-line results, particularly if the Dec-Q guide shows a clear path toward gross margin expansion. Should shares sell off on cont’d worries over auto production or data center capex, we would use the weakness as a buying opportunity. As a reminder, we launched coverage of ALGM on Aug 12th, & we hosted a fireside chat with ALGM on Sep 2nd."

For an analyst ratings summary and ratings history on Allegro MicroSystems click here. For more ratings news on Allegro MicroSystems click here.

Shares of Allegro MicroSystems closed at $33.17 yesterday.

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