Loop Capital Starts Monolithic Power Systems (MPWR) at Hold, 'we feel the bull-case thesis is well understood'
Loop Capital analyst Gary Mobley initiates coverage on Monolithic Power Systems (NASDAQ: MPWR) with a Hold rating and a price target of $660.00.
The analyst comments "We are initiating coverage of Monolithic Power Systems (MPWR) with a Hold rating and $660 PT. While impressed with MPWR's consistent ability to take power management semiconductor market share in all types of market conditions, good or bad, we feel the bull-case thesis is well understood (NOTE: bull case centers mostly on MPWR's leverage to AI accelerated GPU compute and high performance compute). After all, shares currently trade at approximately 37.0x NTM non-GAAP EPS (NOTE: MPWR shares have slightly underperformed the SOX by ~25ppts YTD, ~13ppt of out performance in CY23 and ~50% better performance vs. the SOX on a 5-yr basis). In short, we are looking for a more opportune time to become more constructive with our rating. We believe we will have such an opportunity between now and perhaps NVIDIA's launch of Rubin in 2026 (NOTE: Rubin is believed to be the 1st possible intercept point for a vertical power solution to be used by NVIDIA)."
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Shares of Monolithic Power Systems closed at $761.30 yesterday.