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)."

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 $761.30 yesterday.

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