Allegro MicroSystems (ALGM) PT Raised to $35 at Mizuho Securities

Mizuho Securities analyst Vijay Rakesh raised the price target on Allegro MicroSystems (NASDAQ: ALGM) to $35.00 (from $30.00) while maintaining a Buy rating.

The analyst commented, "On Tuesday, ALGM reported strong DecQ rev/EPS of $164M (cons. $149M). ALGM guided to a solid MarQ topline at $167M (cons. $152M) and GMs at 50.5%. ALGM noted DecQ strength from Autos up 15% y/y vs LVP of up ~2% y/y as ADAS and xEV drove strong content and design wins. ALGM noted strong Automotive demand (80% of revenues) with lean inventories and supply chain almost depleted. Reiterating our Buy, raising estimates and PT to $35 (prior $30) as ALGM is strategically positioned with leading Sensor market share in the fastest growing EV markets, Automotive and Power IC tailwinds, and a foundry ramp driving topline and sustainable GM improvements."

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