Monolithic Power Systems (MPWR) Rises on Strong Q1 Results and Optimistic Forecast

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May 02, 2025
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Summary Points:

  • Monolithic Power Systems (MPWR, Financial) shares surged 7% driven by strong Q1 results and positive future forecasts.
  • Analysts maintain optimistic 'Buy' ratings, setting new price targets amid anticipated growth.
  • Significant potential upside projected based on analyst consensus and GuruFocus estimates.

Monolithic Power Systems' Q1 Performance Sparks Investor Confidence

Shares of Monolithic Power Systems (NASDAQ: MPWR) exhibited a robust 7% increase following the release of impressive first-quarter results and an optimistic forecast for its Enterprise Data segment. Despite a slight dip in Q1 revenue, the company is poised for substantial growth in the latter half of 2025, bolstered by pivotal design wins and customer qualification progress. Analysts at both Needham and Citi uphold their bullish stance, reinforcing their Buy ratings while adjusting price targets to $800 and $700, respectively.

Wall Street Analysts' Expectations and Price Targets

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According to the analysis provided by 13 financial experts, the average price target for Monolithic Power Systems Inc (MPWR, Financial) stands at $767.33. This prediction showcases a substantial potential upside of 20.88% from the current stock price of $634.78, with high and low price estimates of $925.00 and $600.00, respectively.

Brokerage Recommendations and GF Value Insights

The consensus from 18 brokerage firms sets the average recommendation for MPWR at 2.1, indicating an "Outperform" status. On the predetermined scale of 1 to 5, this rating sits closer to a Strong Buy, underscoring prevailing positive sentiment among analysts.

Furthermore, GuruFocus' estimation—which involves an extensive analysis of historical trading multiples and anticipated business growth—projects the GF Value for MPWR over one year at $858.12. This valuation hints at a potential upside of 35.18% from its current market price. For more comprehensive assessment and details, visit the Monolithic Power Systems Inc (MPWR, Financial) Summary page.

Investors watching MPWR will find these insights key as the company positions itself for a promising future, with analyst ratings and intrinsic valuations aligning on its growth trajectory.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.