Barclays has revised its outlook on Allegro MicroSystems (ALGM, Financial), cutting the stock's price target from $30 to $22 while maintaining an Overweight rating. This adjustment comes as the firm updates its semiconductor and semiconductor capital equipment models in anticipation of upcoming first-quarter earnings.
The revision reflects concerns over ongoing tariffs and trade tensions, which have prompted the firm to reassess valuation metrics, particularly regarding exposure to China and consumer markets. By reducing target multiples, the firm aims to better align expectations with the potential impact of these macroeconomic factors on the semiconductor sector.
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 $28.71 with a high estimate of $35.00 and a low estimate of $22.00. The average target implies an upside of 73.68% from the current price of $16.53. 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 $26.66, suggesting a upside of 61.28% from the current price of $16.53. 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.
