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On Friday, Needham analysts maintained a Buy rating and an $800.00 price target for Monolithic Power Systems (NASDAQ:MPWR) shares. Following the company’s analyst day event in San Jose, the firm cited increased guidance for the first quarter of 2025. The adjustment was attributed primarily to widespread demand and a surge in Enterprise Data from the company’s principal customer. According to InvestingPro data, 15 analysts have revised their earnings upwards, with price targets ranging from $665 to $1,100. The company currently trades slightly below its Fair Value.
Monolithic Power Systems is refocusing on its core identity as a diversified analog supplier. This shift is supported by the introduction of new products and the expansion of its serviceable available market (SAM). Since 2018, the company’s SAM has almost doubled, bolstered by deeper market penetration in sectors such as automotive, AI/cloud computing, automation, and robotics. The company’s strong market position is reflected in its impressive 21.2% revenue growth and robust financial health score of 3.17 out of 5 on InvestingPro.
Additionally, Monolithic Power Systems is set to grow within the Enterprise Data Center segment, with the planned launch of its innovative 3A/mm2 solutions set in 2026. The company is also extending its footprint in the automotive industry, where it aims to take advantage of the transition to 48-volt systems.
At the analyst day, Monolithic Power Systems highlighted potential growth areas, including automation and robotics. The company also shared insights on its ability to generate approximately $150 in content for a humanoid robot, showcasing the breadth of its technological capabilities and market adaptability.
In other recent news, Monolithic Power Systems has made several updates that investors should note. The company raised its first-quarter revenue guidance to $635 million, an increase from the previously estimated $620 million, as announced during their Analyst Day event. Stifel analysts reiterated their Buy rating with a $1,100 price target, expressing confidence in the company’s innovative approach and strategic initiatives. KeyBanc maintained an Overweight rating, highlighting the company’s robust long-term fundamentals and revenue growth potential. Meanwhile, Rosenblatt Securities adjusted their price target to $750, citing the company’s advantageous position in meeting the demand for efficient power solutions but noting the need for precise execution in AI initiatives.
Citi analysts maintained a Buy rating and an $800 price target, acknowledging Monolithic Power’s strategic focus on expanding into non-AI markets like Automotive, Industrial, and Communications. Despite some uncertainties in the Enterprise Data segment, Citi remains optimistic about the company’s diversified business model and consistent performance. The company’s long-term revenue growth is projected to outpace the semiconductor industry by 10-15%, supported by its efforts to reduce the total system cost (TCO) and expand into new markets. Monolithic Power’s management emphasized the potential for growth from vertical markets not fully covered in recent presentations, signaling a broadening competitive moat.
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