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Investing.com - Truist Securities raised its price target on MACOM Technology Solutions (NASDAQ:MTSI) to $180.00 from $158.00 while maintaining a Buy rating on the stock. Currently trading at $163.93, MACOM has already surpassed Truist’s previous target, with the stock trading near its 52-week high according to InvestingPro data.
The price target increase follows MACOM’s solid third-quarter results and fourth-quarter outlook, with gross profit margin improvements offsetting previous challenges from the company’s recently-acquired RTP fabrication facility. InvestingPro data shows MACOM maintains a healthy 54.76% gross profit margin, while revenue grew an impressive 33.5% over the last twelve months.
Truist noted that MACOM’s early 2026 outlook appears robust and aligns with the firm’s existing model, which maintains a $4.51 earnings per share estimate for calendar year 2026.
The new $180 price target represents a 40x multiple, which includes a 12x premium compared to recently-elevated peers in the sector.
While acknowledging the stock’s relatively high valuation, Truist justified the premium based on MACOM’s consistent execution, baseline growth trajectory, and potential upside across its various end markets.
In other recent news, MACOM Technology Solutions Holdings Inc reported its fourth-quarter earnings for fiscal year 2025, surpassing expectations. The company achieved an adjusted earnings per share of $0.94, exceeding the forecasted $0.929. Additionally, MACOM’s revenue reached $261.2 million, slightly above the anticipated $260.17 million. These results indicate a positive performance for the company in the recent quarter. Analysts had projected these figures, and the company managed to outperform these estimates. This development is noteworthy for investors who closely monitor earnings and revenue figures. The recent earnings call highlighted MACOM’s ability to deliver stronger-than-expected financial results.
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