Monolithic Power Systems price target raised to $800 from $700 at Oppenheimer

Investing.com - Oppenheimer raised its price target on Monolithic Power Systems (NASDAQ:MPWR) to $800 from $700 on Tuesday, while maintaining an Outperform rating on the stock. The company, currently valued at $34.5 billion, has demonstrated strong financial health according to InvestingPro metrics, with a "GREAT" overall rating.

The price target increase represents a 35x P/E multiple (excluding cash) based on Oppenheimer’s calendar year 2026 earnings per share estimate of $22.92, which is below MPWR’s five-year P/E average of 38x. Currently trading at a P/E of 19x, the stock has shown impressive momentum with a 20% return over the past six months.

Oppenheimer justified the target by citing expectations of strength in server, communications, and auto verticals, with overall growth expected to exceed peers by 10-15% long term.

The firm highlighted Monolithic Power Systems’ above-average EPS growth outlook and improving revenue mix away from consumer markets toward automotive, industrial, communications, and networking segments.

Oppenheimer also noted the company’s improving margin profile, expected improvements in cash and capital allocation over time, and management’s consistent record of execution.

In other recent news, Monolithic Power Systems reported first-quarter 2025 earnings that exceeded analyst expectations with an EPS of $4.04 compared to the forecasted $4.00, and revenue reaching $637.6 million, surpassing projections of $631.16 million. The company announced a quarterly dividend of $1.56 per common share, payable on July 15, 2025, for stockholders of record as of June 30, 2025. Analysts at Citi have raised Monolithic Power Systems’ stock price target twice, first from $615 to $700, and then to $785, while maintaining a Buy rating. These upgrades reflect a positive outlook on the company’s Enterprise and Auto Business segments, which together account for nearly half of its sales. Citi analysts have expressed confidence in Monolithic Power Systems’ potential growth in the second half of 2025, particularly in the Enterprise Data end market. The company is also expanding its manufacturing and R&D centers outside China to address geopolitical risks. Additionally, Monolithic Power Systems is transitioning from silicon-only solutions to comprehensive modular systems, aiming for long-term growth through innovative product development.

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