A Closer Look at 5 Analyst Recommendations For Allegro Microsystems

In the last three months, 5 analysts have published ratings on Allegro Microsystems ALGM, offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Allegro Microsystems and provided 12-month price targets. The average target is $26.4, accompanied by a high estimate of $33.00 and a low estimate of $21.00. A 18.77% drop is evident in the current average compared to the previous average price target of $32.50.

Breaking Down Analyst Ratings: A Detailed Examination

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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Allegro Microsystems. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Allegro Microsystems compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Allegro Microsystems's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Allegro Microsystems's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Allegro Microsystems analyst ratings.

Get to Know Allegro Microsystems Better

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 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.

Decline in Revenue: Over the 3 months period, Allegro Microsystems faced challenges, resulting in a decline of approximately -31.98% in revenue growth as of 30 September, 2024. This signifies a reduction in the company's 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -17.97%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Allegro Microsystems's ROE excels beyond industry benchmarks, reaching -3.29%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Allegro Microsystems's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -2.29%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.45.

Analyst Ratings: What Are They?

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.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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