Demystifying Allegro Microsystems: Insights From 6 Analyst Reviews

Allegro Microsystems ALGM underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $28.5, a high estimate of $31.00, and a low estimate of $23.00. Observing a 8.9% increase, the current average has risen from the previous average price target of $26.17.

Exploring Analyst Ratings: An In-Depth Overview

The standing of Allegro Microsystems among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Allegro Microsystems. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Allegro Microsystems compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Allegro Microsystems's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Allegro Microsystems's market standing. Stay informed and make data-driven decisions with 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.

A Deep Dive into Allegro Microsystems's Financials

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Negative Revenue Trend: Examining Allegro Microsystems's financials over 3 months reveals challenges. As of 31 December, 2024, the company experienced a decline of approximately -30.24% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind 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 -3.86%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Allegro Microsystems's ROE stands out, surpassing industry averages. With an impressive ROE of -0.73%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.47%, the company showcases effective utilization of assets.

Debt Management: Allegro Microsystems's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.43, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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