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Investing.com - Mizuho (NYSE:MFG) raised its price target on Allegro (WA:ALEP) MicroSystems (NASDAQ:ALGM) to $40.00 from $37.00 on Thursday, while maintaining an Outperform rating following the company’s quarterly earnings report. The semiconductor company, currently valued at $5.8 billion, has seen its stock surge over 40% in the past six months, according to InvestingPro data.
Allegro reported results in line with expectations for the June quarter and guided September quarter revenue to approximately $210 million, slightly above the consensus estimate of $208 million, driven by strength in E-Mobility and Data Center segments. The company’s gross profit margin stands at 44.5%, though InvestingPro analysis indicates it hasn’t been profitable over the last twelve months.
The company’s E-Mobility revenue increased 16% quarter-over-quarter, while overall automotive revenue rose 2% sequentially. More than 75% of June quarter design wins came from E-Mobility and Industrial applications, highlighting the company’s growing presence in these markets.
Magnetic Sensor sales grew 10% quarter-over-quarter, with tunnel magnetoresistance (TMR) technology gaining momentum through global wins for power management integrated circuits in industrial applications. Geographically, China and European Union markets showed particular strength, with revenue increasing approximately 11% and 20% quarter-over-quarter, respectively.
Allegro’s management guided gross margin up 80 basis points sequentially, citing improving utilization and better manufacturing costs, while noting positive momentum expected for the second half of 2025 with distributor inventory replenishment, strong book-to-bill ratios, and growing backlog. InvestingPro subscribers can access 12 additional key insights about ALGM, including detailed valuation metrics and growth forecasts, through the comprehensive Pro Research Report available for over 1,400 US stocks.
In other recent news, Allegro Microsystems Inc . reported a stronger-than-expected start to its fiscal year 2026. The company announced that both earnings and revenue exceeded analyst forecasts. Earnings per share were reported at $0.09, surpassing the expected $0.08. Revenue reached $203.4 million, which was 2.77% above predictions. Despite these positive financial results, the company’s stock experienced a notable decline in pre-market trading. The stock dropped by 6.05%, although the reasons for this decline were not specified in the reports. These developments highlight the company’s recent performance and market response.
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