- Allegro MicroSystems poised for growth through e-Mobility expansion and auto sales recovery.
- Analysts suggest a mixed outlook on stock performance with current price exceeding average target.
- GuruFocus metrics indicate a potential overvaluation concern.
Allegro MicroSystems (ALGM, Financial) is on the cusp of capitalizing on a cyclical upswing in the automotive sector. As global auto sales are expected to rise, Allegro's focus on content-rich e-Mobility solutions is predicted to drive significant growth. Analysts anticipate that this segment will contribute to more than 50% of the company's sales by late 2025, with potential for gross margins to reach 50% by early 2026.
Wall Street Analysts Forecast
According to projections by 12 analysts, Allegro Microsystems Inc (ALGM, Financial) has an average price target of $29.33 over the next year. The highest forecast is $38.00, and the lowest is $23.00. Currently priced at $31.88, this suggests a potential downside of 7.99%. For a more detailed breakdown of these estimates, investors can visit the Allegro Microsystems Inc (ALGM) Forecast page.
Brokerage Recommendations
Allegro Microsystems Inc (ALGM, Financial) garners an "Outperform" status based on the consensus recommendation from 12 brokerage firms, with an average rating of 1.8 on a 1 to 5 scale (1 being Strong Buy and 5 being Sell).
GF Value Insights
Based on GuruFocus estimates, the projected GF Value for Allegro Microsystems Inc (ALGM, Financial) over the next year is $26.81. This suggests a downside of 15.9% from the current price of $31.88, indicating that the stock may be overvalued at present. The GF Value is derived from the stock's historical trading multiples, past business growth, and future business performance projections. Further insights are available on the Allegro Microsystems Inc (ALGM) Summary page.
