Citi has revised its price target for Monolithic Power Systems (MPWR, Financial), lowering it from $800 to $615, while maintaining a Buy rating on the stock. This adjustment reflects concerns regarding a potential recession, bolstered by the persistence of tariffs, particularly those affecting China. These tariffs are anticipated to persist for an extended period.
The analysis from Citi indicates that U.S. semiconductor stocks are currently valued around the midpoint of their historical averages. Citing previous economic downturns, the firm acknowledges the potential for multiple and earnings-per-share (EPS) compressions. Accordingly, estimates for the semiconductor sector have been reduced by an average of 20%.
Despite the general downward trend, Citi identifies Analog Devices (ADI) and Texas Instruments (TXN) as historically strong performers during economic downturns, suggesting that these companies may again demonstrate resilience in the current market environment.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Monolithic Power Systems Inc (MPWR, Financial) is $806.03 with a high estimate of $1,100.00 and a low estimate of $600.00. The average target implies an upside of 66.29% from the current price of $484.71. More detailed estimate data can be found on the Monolithic Power Systems Inc (MPWR) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Monolithic Power Systems Inc's (MPWR, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Monolithic Power Systems Inc (MPWR, Financial) in one year is $851.82, suggesting a upside of 75.74% from the current price of $484.71. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Monolithic Power Systems Inc (MPWR) Summary page.
