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On Wednesday, Rosenblatt Securities maintained its Neutral rating on Monolithic Power Systems stock (NASDAQ:MPWR), with a consistent price target of $880.00, falling within the broader analyst range of $600 to $1,100. According to InvestingPro data, the stock currently trades at a premium valuation with a P/E ratio of 73.5x, reflecting high market expectations. The firm anticipates that Monolithic Power will report fourth-quarter earnings that align with current market expectations. The earnings release is scheduled for tomorrow, after the market closes.
Analysts at Rosenblatt project that Monolithic Power Systems will match the consensus revenue estimates of $608 million and the Non-GAAP EPS forecast of $3.98 for the fourth quarter of 2024. They expect the company to perform well in certain sectors such as Enterprise, Communications, and Automotive, which may balance out weaker performance in Computing, Consumer, and Industrial markets. The company has demonstrated solid financial health, earning a "GREAT" overall score from InvestingPro, with impressive metrics including a current ratio of 6.42x and minimal debt exposure.
For the first quarter of 2025, the firm foresees Monolithic Power providing guidance that aligns with expectations, though with a slight downside risk. Rosenblatt’s own estimates are set at $580 million in revenue and Non-GAAP EPS of $3.69, closely matching the consensus revenue forecast of $581 million and Non-GAAP EPS of $3.62.
The analysis also touched upon Monolithic Power’s position in the market, particularly its role with Blackwell, where it’s expected to face challenges in maintaining market share in vertical/lateral power modules. This is due to Nvidia (NASDAQ:NVDA)’s potential introduction of alternative suppliers such as Renesas and Infineon (OTC:IFNNY). Despite this, Rosenblatt believes that Monolithic Power has been the prime supplier and is likely to secure more market share compared to its competitors.
Rosenblatt’s outlook includes a positive note on Monolithic Power’s future, expecting the company to secure a leading role in power delivery for accelerator sockets, which could apply to a variety of GPU/ASIC solutions. The $880 price target is based on a 40x P/E multiple applied to the firm’s FY26 Non-GAAP EPS estimates. With revenue growing at 11.62% over the last twelve months and strong financial metrics, investors seeking deeper insights can access comprehensive analysis through InvestingPro’s detailed research reports, which provide extensive coverage of MPWR’s financial health, valuation metrics, and growth prospects among 1,400+ top stocks.
In other recent news, Monolithic Power Systems has been the focus of several analyst reviews. Truist Securities adjusted its price target for the company to $762, while maintaining a Buy rating, due to potential weaknesses in the company’s Enterprise Data end market. Citi initiated coverage with a Buy rating and a $700 price target, citing the company’s consistent performance and potential growth in the artificial intelligence and automotive markets.
Wells Fargo (NYSE:WFC) assigned an Equal Weight rating and a $610 price target, highlighting concerns about the company’s involvement in NVIDIA’s Blackwell platform. Needham also adjusted its price target to $600, reflecting uncertainties about the company’s position with the Blackwell platform, but maintained a Buy rating. KeyBanc Capital Markets reduced its price target to $700, despite maintaining an Overweight rating, due to concerns about a decrease in market share for its products used in Blackwell.
These are recent developments that have highlighted the company’s position in the semiconductor industry and its relations with major players such as NVIDIA. The analysts’ analysis and price target adjustments reflect their assessment of the company’s current state and future prospects, based on the information available.
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