Demystifying Allegro Microsystems: Insights From 7 Analyst Reviews

7 analysts have shared their evaluations of Allegro Microsystems ALGM during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $33.86, with a high estimate of $37.00 and a low estimate of $32.00. Observing a downward trend, the current average is 7.66% lower than the prior average price target of $36.67.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Allegro Microsystems. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Allegro Microsystems. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Allegro Microsystems compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Allegro Microsystems's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

For valuable insights into Allegro Microsystems's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Allegro Microsystems analyst ratings.

Delving into Allegro Microsystems's Background

Allegro Microsystems Inc is a designer, developer, fabless manufacturer, and marketer of sensor ICs and application-specific analog power ICs for automotive and industrial markets. Its Sensor IC allows customers to precisely measure motion, speed, position, and current, and Power ICs include high-temperature and high-voltage capable motor drivers, power management, and LED driver ICs. Its products are divided into three categories such as SENSE which includes Current Sensors, Switches and Latches, and Interface ICs among others; REGULATE which includes Regulators, ClearPower Modules, and LED Drivers; and DRIVE which includes BLDC Drivers, Brush DC, and others. Key revenue for the company is generated from Greater China and the rest from the United States, Japan, Europe, and other regions.

Key Indicators: Allegro Microsystems's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Negative Revenue Trend: Examining Allegro Microsystems's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -10.71% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Allegro Microsystems's net margin is impressive, surpassing industry averages. With a net margin of -2.96%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Allegro Microsystems's ROE excels beyond industry benchmarks, reaching -0.63%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Allegro Microsystems's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.46%, the company showcases efficient use of assets and strong financial health.

Debt Management: Allegro Microsystems's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.24.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.