Stifel has revised its price target for Macom Technology Solutions Holdings Inc. (MTSI, Financial), reducing it from $150 to $120 while maintaining a Buy rating on the company's shares. This adjustment reflects concerns over the potential impacts of tariffs on the industry, particularly as the company approaches its first-quarter earnings season.
The firm anticipates that the Analog, Connectivity, and Processors sector will report results largely in line with expectations for the March quarter. However, it foresees a weaker outlook for the June quarter. The uncertainties surrounding tariffs—in terms of their scale, duration, and scope—add to the industry's challenges.
Stifel's analysis suggests that the possibility of the semiconductor sector entering a cyclical downturn has significantly increased. This outlook comes as the industry navigates ongoing trade tensions and other macroeconomic factors that could influence future performance.
