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Investing.com -- Mizuho raised price targets across a slate of analog semiconductor names ahead of June-quarter earnings, citing signs of bottoming in the auto-industrial cycle and improving pricing dynamics for the second half of 2025.
Ahead of the June quarter earnings releases, Mizuho (NYSE:MFG) provided an update on the Analog/EV names it covers, raising targets on Allegro (WA:ALEP) MicroSystems, Microchip (NASDAQ:MCHP), Mobileye, NXP Semiconductors (NASDAQ:NXPI), and Texas Instruments (NASDAQ:TXN).
Mizuho now sees the June quarter as “a bottom for analog,” with “improving SepQ outlook.”
Analysts expect June revenue estimates for auto/industrial analog players are likely to be in line, with consensus forecasting growth of 4% to 5% quarter-over-quarter.
“SepQ analog supply chain pricing [is] pointing to up ~5% q/q,” the note said, adding that trends in pricing, manufacturing PMIs, and lead times point to “2H25E analog coverage revenue upside up ~7% h/h.”
Texas Instruments’ price target was lifted to $205, with analysts noting “a better 2H25E demand profile allowing TXN to work through elevated inventories.”
ALGM was raised to $37 on “continued tailwinds from emobility.” MCHP rose to $85 as “analog stocks have likely bottomed,” and NXPI was increased to $265 due to strength in automotive demand.
On EVs, Mizuho sees global BEV light vehicle production up 15% year-on-year in 2025, with China driving growth despite U.S. headwinds.
“We now see C25E BEV LVP up 15% y/y… while EU BEV registrations grew 25% YTD y/y,” they noted.
Meanwhile, the firm cut its target for Tesla (NASDAQ:TSLA) to $375, citing “continued headwinds from slowing sales,” although it remains the U.S. EV leader.