- Allegro MicroSystems (ALGM, Financial) reported robust Q4 revenue, driven by significant growth in automotive sales.
- Analysts project a promising price target with substantial upside potential.
- GuruFocus estimates suggest ALGM is trading below its fair value.
Allegro MicroSystems (NASDAQ: ALGM) has announced its financial results for Q4, reporting a commendable revenue of $193 million. This success is primarily attributed to an 8% surge in automotive sector sales, underscoring the company's strategic focus and market strength. As Allegro aims to capitalize on an estimated $12 billion market opportunity, its forward-looking focus is on accelerating product development to maintain momentum. For Q1 2026, sales projections fall between $192 million and $202 million, fueled by expected growth in both the automotive and industrial segments.
Wall Street Analysts Forecast
Market analysts have provided their one-year price targets for Allegro MicroSystems Inc (ALGM, Financial), resulting in an average target price of $27.53. This figure encompasses a high estimate of $35.00 and a low estimate of $22.00, indicating a potential upside of 29.48% from the current trading price of $21.26. For more detailed insights, investors can visit the Allegro MicroSystems Inc (ALGM) Forecast page.
In terms of brokerage recommendations, the consensus from 11 firms positions Allegro MicroSystems Inc (ALGM, Financial) with an average rating of 1.9, placing it in the "Outperform" category. This rating scale ranges from 1 to 5, where 1 represents a Strong Buy, and 5 indicates a Sell, reflecting a positive sentiment among analysts.
According to GuruFocus estimates, the GF Value for Allegro MicroSystems Inc (ALGM, Financial) over the next year is anticipated to be $26.56. This valuation implies a 24.93% upside from the current trading price of $21.26. The GF Value is a metric that assesses the fair value at which the stock should naturally trade, based on historical multiples, past business growth, and future performance forecasts. For a comprehensive view of these metrics, visit the Allegro MicroSystems Inc (ALGM) Summary page.
