Allegro MicroSystems (NASDAQ:ALGM) Given New $55.00 Price Target at Needham & Company LLC

Key Points

• Needham & Company raised its price target for Allegro to $55 (from $45) and kept a buy rating, implying roughly a 14.75% upside from the current price.
• Allegro beat Q4 estimates with $0.17 EPS (vs. $0.16) and $243.2M revenue (vs. $235.9M), up ~26% YoY, and issued Q1 FY27 guidance of $0.190–$0.230 EPS and $245–$255M revenue that is roughly in line with consensus.
• Despite the growth and institutional inflows, the company reported a negative net margin (-1.57%), and the stock traded near $47.93 with a consensus price target of $46 and an overall "Moderate Buy" analyst stance.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) had its target price increased by equities research analysts at Needham & Company LLC from $45.00 to $55.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "buy" rating on the stock. Needham & Company LLC's target price indicates a potential upside of 14.75% from the company's current price.

Other equities research analysts also recently issued research reports about the stock. Wall Street Zen upgraded shares of Allegro MicroSystems from a "hold" rating to a "buy" rating in a research note on Sunday, January 18th. Jefferies Financial Group reiterated a "buy" rating and set a $45.00 target price on shares of Allegro MicroSystems in a research note on Thursday, February 19th. Wells Fargo & Company increased their target price on shares of Allegro MicroSystems from $45.00 to $48.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 11th. TD Cowen increased their price target on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the stock a "buy" rating in a report on Friday, January 30th. Finally, Bank of America increased their price target on shares of Allegro MicroSystems from $36.00 to $39.00 and gave the stock a "buy" rating in a report on Wednesday, January 21st. Ten investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $46.00.

Allegro MicroSystems Stock Performance

Shares of ALGM traded down $3.44 during mid-day trading on Thursday, hitting $47.93. 5,308,433 shares of the company's stock were exchanged, compared to its average volume of 2,416,250. Allegro MicroSystems has a fifty-two week low of $19.75 and a fifty-two week high of $51.40. The firm has a market capitalization of $8.88 billion, a P/E ratio of -599.13 and a beta of 2.02. The business's 50 day moving average is $36.25 and its two-hundred day moving average is $32.67. The company has a current ratio of 3.65, a quick ratio of 2.39 and a debt-to-equity ratio of 0.30.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.17 earnings per share for the quarter, topping the consensus estimate of $0.16 by $0.01. Allegro MicroSystems had a negative net margin of 1.57% and a positive return on equity of 4.35%. The business had revenue of $243.19 million during the quarter, compared to the consensus estimate of $235.94 million. During the same quarter in the prior year, the firm earned $0.06 earnings per share. The business's quarterly revenue was up 26.1% compared to the same quarter last year. Allegro MicroSystems has set its Q1 2027 guidance at 0.190-0.230 EPS. On average, equities analysts expect that Allegro MicroSystems will post 0.27 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ALGM. Bank of America Corp DE increased its holdings in Allegro MicroSystems by 136.6% in the third quarter. Bank of America Corp DE now owns 952,679 shares of the company's stock valued at $27,818,000 after buying an additional 3,556,410 shares in the last quarter. Invesco Ltd. increased its stake in shares of Allegro MicroSystems by 44.0% during the 4th quarter. Invesco Ltd. now owns 7,651,051 shares of the company's stock worth $201,835,000 after purchasing an additional 2,338,624 shares in the last quarter. Alliancebernstein L.P. increased its stake in shares of Allegro MicroSystems by 189.4% during the 2nd quarter. Alliancebernstein L.P. now owns 2,759,872 shares of the company's stock worth $94,360,000 after purchasing an additional 1,806,183 shares in the last quarter. Norges Bank purchased a new position in shares of Allegro MicroSystems during the 4th quarter worth approximately $38,457,000. Finally, Adage Capital Partners GP L.L.C. increased its stake in shares of Allegro MicroSystems by 77.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock worth $73,968,000 after purchasing an additional 1,227,317 shares in the last quarter. 56.45% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Allegro MicroSystems

Here are the key news stories impacting Allegro MicroSystems this week:

• Positive Sentiment: Q4 results beat estimates: Allegro reported $0.17 EPS vs. consensus $0.16 and revenue of $243.2M vs. $235.9M, showing a clear revenue and EPS beat that supports near-term momentum. Allegro MicroSystems, Inc. (ALGM) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Strong revenue growth and FY scale: Q4 sales were up ~26% YoY and fiscal‑year 2026 sales rose ~23% to $890M — evidence of demand traction in its automotive and industrial end markets. Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Guidance roughly in line: Management set Q1 FY27 EPS guidance of $0.190–$0.230 and revenue guidance of $245–$255M, which overlaps consensus (EPS consensus ~$0.190; revenue consensus ~$246.6M) — guidance that reduces downside surprise risk. Earnings / Guidance Details and Conference Call
• Neutral Sentiment: Analyst stance and coverage: Consensus analyst sentiment is modestly constructive (consensus “Moderate Buy”), which supports interest but doesn’t imply strong upgrade-driven buying. Analyst Consensus: Moderate Buy
• Neutral Sentiment: Valuation context: Recent sector rally and rising optimism have prompted valuation re-checks; investors are balancing growth versus cyclical/valuation risk for semiconductor suppliers. Valuation Check After Sector Rally
• Negative Sentiment: Profitability and margin concerns: Despite revenue growth, Allegro reported a negative net margin (-1.57%) and modest ROE, which can make investors sensitive to any signals that margin recovery will be slow or that costs/one‑offs pressured results. Earnings / Margin Details

About Allegro MicroSystems

Allegro MicroSystems, Inc NASDAQ: ALGM is a leading designer and manufacturer of high-performance power and sensing integrated circuits. The company focuses on semiconductor solutions that enable precise motion control, energy-efficient power management and robust sensing in a wide range of applications. Allegro's product portfolio includes Hall-effect magnetic sensors, current and position sensing ICs, motor driver and controller devices, and power management components.

Allegro MicroSystems serves major automotive, industrial and consumer markets worldwide.

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