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On Thursday, Stifel analysts adjusted their outlook on Monolithic Power Systems (NASDAQ:MPWR), reducing the price target from the previous $1,100.00 to $880.00. Despite the lowered price target, Stifel maintains a Buy rating on the company’s stock. According to InvestingPro data, the company currently trades at a P/E ratio of 13.7x, with analyst targets ranging from $600 to $925. The stock has shown significant momentum recently, gaining over 8% in the past week. The revision reflects concerns over the potential for Monolithic Power Systems to guide revenue forecasts for the second quarter of 2025 either in line with or possibly below Stifel’s estimate.
Stifel’s current revenue estimate for Monolithic Power Systems in Q2 2025 stands at $635.0 million, which would represent a flat growth quarter-over-quarter. This projection is slightly above the consensus estimate of $634.7 million, which anticipates a 2.2% quarter-over-quarter increase. The adjustment in the price target is attributed to the prevailing uncertain macroeconomic and trade environment.
Despite the reduction in the price target, Stifel’s commentary suggests confidence in Monolithic Power Systems’ strategic positioning. The company is expected to continue capturing a significant share of its largest Enterprise Data customer’s new product cycles in the second half of 2025. Additionally, Monolithic Power Systems is seen as well-placed to benefit from other hyperscalers’ new AI accelerator platforms. InvestingPro analysis shows the company maintains strong fundamentals with a current ratio of 5.31x and minimal debt, while achieving a robust revenue growth of 21.2% in the last twelve months.
The firm’s analysis indicates that while there is speculation about Monolithic Power Systems’ role with its largest customer, the company’s overall prospects remain strong. Stifel’s maintained Buy rating points to a belief in the company’s ability to navigate the current challenges and capitalize on future opportunities in its market segment.
Investors will be watching Monolithic Power Systems closely as the company approaches its next earnings report, scheduled for May 6, 2025, which will provide further insight into its performance and outlook amid the challenging macroeconomic landscape. For deeper analysis of MPWR’s financial health and growth prospects, InvestingPro subscribers can access comprehensive research reports and 16 additional ProTips that provide valuable insights into the company’s valuation and market position.
In other recent news, Monolithic Power Systems has amended its bylaws to allow shareholders holding at least 30% of outstanding common stock to call special meetings, according to a recent SEC filing. This change is part of the company’s efforts to enhance corporate governance and align with shareholder interests. On the financial front, Monolithic Power Systems has received attention from several analyst firms. Truist Securities maintained a Buy rating with a price target of $897, highlighting the company’s strength in product innovation and projected sales growth of approximately 20%. Needham also reaffirmed a Buy rating with an $800 price target, citing increased guidance for the first quarter of 2025 due to strong demand and a focus on expanding its serviceable market. KeyBanc kept an Overweight rating and an $850 price target, noting the company’s raised revenue guidance to $635 million for the first quarter. Additionally, Stifel analysts reiterated a Buy rating with a target of $1,100, emphasizing Monolithic Power Systems’ innovative approach and potential for significant growth. These developments underscore the company’s strong market position and the confidence analysts have in its future performance.
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