Allegro MicroSystems (ALGM, Financial) has announced that OnSemi (ON) has withdrawn their unsolicited acquisition proposal. Allegro's Board of Directors emphasized that they find public discussions about speculative deals unproductive and not beneficial for their shareholders. Nonetheless, the board felt compelled to clarify details due to market speculation surrounding their interactions with OnSemi.
The board of Allegro, along with independent financial and legal advisors, thoroughly evaluated OnSemi’s proposals, determining them inadequate. Allegro's board maintained communication with OnSemi, providing a structured path for negotiation that could potentially lead to a better offer for shareholders. Despite these efforts, OnSemi decided not to continue with the proposal.
Allegro confirmed its commitment to the interests of its stockholders and expressed confidence in its strategic direction. The company highlighted its unique position to capitalize on trends in electrification and autonomy, driven by its advanced sensing and power technologies. Allegro emphasized ongoing innovation efforts aimed at strengthening its leadership in sectors such as e-Mobility, clean energy, data centers, robotics, and automation. The company is focused on unlocking additional value for stockholders by leveraging its competitive advantages and strong customer partnerships.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Allegro Microsystems Inc (ALGM, Financial) is $29.44 with a high estimate of $35.00 and a low estimate of $23.80. The average target implies an upside of 48.07% from the current price of $19.88. More detailed estimate data can be found on the Allegro Microsystems Inc (ALGM) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Allegro Microsystems Inc's (ALGM, Financial) average brokerage recommendation is currently 1.9, 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 Allegro Microsystems Inc (ALGM, Financial) in one year is $26.44, suggesting a upside of 33% from the current price of $19.88. 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 Allegro Microsystems Inc (ALGM) Summary page.
