Index falls as earnings results weigh; pound above $1.33, Bodycote soars
On Friday, Stifel analysts maintained a Buy rating on Monolithic Power Systems (NASDAQ:MPWR) stock, with a price target of $1,100.00. This target aligns with broader Wall Street sentiment, as InvestingPro data shows 15 analysts have recently revised their earnings estimates upward. The firm’s confidence in the company was reinforced following Monolithic Power Systems’ Analyst Day event held on March 20, 2025, in San Jose, California.
During the event, the management team highlighted that the business verticals discussed represent only half of the company’s overall operations. The company’s strong execution is evident in its 21.2% revenue growth over the last twelve months, according to InvestingPro data. They also pointed out the potential for significant growth contributions from several other verticals not covered in the presentations.
Stifel’s analysts expressed their belief that Monolithic Power Systems continues to be the leading and most innovative company in the power management sector. They noted the company’s expanding competitive advantage and its evolution beyond a semiconductor manufacturer. This leadership position is reflected in the company’s robust financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis framework.
The analysts were particularly impressed with Monolithic Power Systems’ unique innovation strategy. They mentioned the company’s ability to introduce new technologies that not only enhance performance but also reduce the total system cost (TCO) for customers.
The reaffirmation of the Buy rating and the $1,100 price target reflects Stifel’s outlook on Monolithic Power Systems’ future growth and its strategic positioning within the industry. The company’s Analyst Day has evidently solidified the analysts’ view of its market leadership and potential for continued success.
In other recent news, Monolithic Power Systems has raised its revenue guidance for the first quarter ending March 31, 2025, now expecting revenue between $630 million and $640 million, up from a previous range of $610 million to $630 million. This adjustment reflects a stronger-than-expected performance, with GAAP operating expenses projected to be between $184.9 million and $190.9 million. Non-GAAP operating expenses are expected to range from $131.6 million to $135.6 million. Citi has reiterated a Buy rating for Monolithic Power Systems, maintaining a price target of $800, citing the company’s consistent performance and diversified business model. Truist Securities also reaffirmed its Buy rating, with a price target of $897, expressing confidence in the company’s growth strategy and ability to deliver exceptional growth and margin expansion. KeyBanc Capital Markets speculated on the potential for Monolithic Power Systems to regain market share with NVIDIA (NASDAQ:NVDA)’s Blackwell Ultra platform, although this remains unconfirmed. The company’s Analyst Day emphasized strategic growth in non-AI markets such as Automotive, Industrial, and Communications, aiming for sales growth that outpaces the market by 10-15%. These developments underscore Monolithic Power Systems’ focus on expanding its market presence and maintaining robust financial performance.
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