Allegro MicroSystems (ALGM, Financial) had its price target increased by Evercore ISI analyst Mark Lipacis, moving from $24 to $29, while retaining an Outperform rating. This adjustment comes as the company's shares appreciate following their impressive fourth-quarter earnings results and positive guidance for the first quarter. The firm's revenues for Q4 exceeded the upper limit of their forecasted range, aligning with expected trends at this cycle stage.
Furthermore, the report highlights that distribution inventories saw a 25% reduction. Despite a decline in direct customer numbers, there has been a 20% increase in bookings, accompanied by a rise in orders within lead time.
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 $27.53 with a high estimate of $35.00 and a low estimate of $22.00. The average target implies an upside of 28.36% from the current price of $21.45. 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 $26.56, suggesting a upside of 23.85% from the current price of $21.445. 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.
