
Allegro MicroSystems (ALGM) Stock Forecast & Price Target
Allegro MicroSystems (ALGM) Analyst Ratings
Bulls say
Allegro Microsystems Inc. exhibits a positive financial outlook bolstered by a significant increase in bookings, which reached their highest level in eight quarters with a year-over-year growth of 50% in F3Q25, alongside historically low cancellation rates. The company anticipates a further expansion of margins as it transitions to an asset-light model and expects to gain market share in the automotive and industrial sectors, particularly through its comprehensive solutions involving motor controllers and drivers. Additionally, the improving demand environment, characterized by a book-to-bill ratio consistently above 1:1 and reduced inventory levels among OEMs, positions Allegro favorably for continued growth, especially with the rising adoption of advanced driver-assistance systems (ADAS) and electric vehicles.
Bears say
Allegro Microsystems Inc. is experiencing significant challenges, evident in its projected fourth-quarter revenue guidance of $185.0 million, reflecting a 23.1% year-over-year decline and falling short of both internal and market estimates. Additionally, the company's automotive sales of $130.0 million decreased 8.3% quarter-over-quarter, contributing to the negative outlook, particularly within the E-Mobility segment. Gross margin is anticipated to drop to approximately 47%, considerably lower than expectations, indicating potential pressure on profitability and market competitiveness.
This aggregate rating is based on analysts' research of Allegro MicroSystems and is not a guaranteed prediction by Public.com or investment advice.
Allegro MicroSystems (ALGM) Analyst Forecast & Price Prediction
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