Needham and Jefferies Lift Allegro MicroSystems Target to $45, Cite Mid-Teens Growth
On February 19 Needham lifted its price objective on Allegro MicroSystems to $45 from $41, citing its three-to-five-year model targeting mid-teens revenue growth and gross margins above 55%. Jefferies also raised its target to $45 from $43, noting margin guidance and opportunities in AI data centers and robotics.
1. Analyst Price Objective Raises
On February 19 Needham Capital Markets raised its price objective on Allegro MicroSystems to $45 from $41 and maintained a Buy rating. Jefferies followed with its own increase to $45 from $43, observing that the firm’s updated forecasts aligned with its expected margin guidance.
2. Financial Model Outlined
Allegro’s recent Analyst Day presentation unveiled a three-to-five-year financial model projecting mid-teens annual revenue growth and gross margins exceeding 55%, underpinning analyst confidence in the company’s profitability trajectory.
3. Emerging Growth Drivers
Both firms highlighted expanding opportunities in AI data centers and robotics as catalysts for Allegro MicroSystems’ structural growth profile, suggesting these end markets will support sustained demand and valuation upside.