Key Takeaways:
- Allegro Microsystems' stock tumbles 8% after Onsemi pulls a $6.9 billion acquisition offer.
- Wall Street analysts see a significant upside potential of over 33% with a high price target of $35.00.
- GuruFocus projects a 20.13% increase in Allegro's value within the next year, guiding towards a fair value of $26.44.
Allegro Microsystems (ALGM, Financial) experienced an 8% drop in after-hours trading after Onsemi withdrew its $6.9 billion acquisition offer. The retraction followed Allegro's rejection of Onsemi's $35.10 per share proposal, primarily due to what Onsemi termed as a lack of engagement from Allegro's board. In contrast, Onsemi's shares climbed by 4.6% following the announcement.
Wall Street Analysts' Price Predictions
According to 11 analysts' one-year forecasts, Allegro Microsystems Inc (ALGM, Financial) is expected to reach an average target price of $29.44. The high estimate is set at $35.00, with a low at $23.80. This average target suggests a notable upside of 33.74% from the current trading price of $22.01. Investors can explore more detailed estimates on the Allegro Microsystems Inc (ALGM) Forecast page.
Analyst Recommendations
The consensus from 11 brokerage firms places Allegro Microsystems Inc (ALGM, Financial) at an average brokerage recommendation of 1.9, signaling an "Outperform" status. The recommendation scale ranges from 1 to 5, where 1 indicates a Strong Buy and 5 represents Sell.
GF Value Insights
According to GuruFocus estimates, the projected GF Value for Allegro Microsystems Inc (ALGM, Financial) in one year is poised at $26.44. This projection implies a potential upside of 20.13% from the current price of $22.01. The GF Value reflects GuruFocus' assessment of the fair value at which the stock should ideally trade, taking into account historical multiples, past growth, and future performance estimates. Investors can access more comprehensive data on the Allegro Microsystems Inc (ALGM) Summary page.
