Mizuho Forecasts Strong Price Appreciation for Allegro MicroSystems (NASDAQ:ALGM) Stock

Key Points

• Mizuho raised its price target on Allegro MicroSystems from $44 to $54 and kept an "outperform" rating, while other analysts (Needham to $55, Morgan Stanley upgraded to overweight, UBS/TD Cowen higher) leave the consensus around a moderate buy with an average target near $49.30.
• Allegro beat Q4 estimates (EPS $0.17 vs. $0.16; revenue $243.2M, +26.1% y/y) but issued Q1 guidance roughly in line with Street (EPS $0.190–0.230; revenue $245–255M), prompting a ~6.7% share pullback as investors digested the in‑line outlook and potential near‑term volatility.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) had its price objective hoisted by investment analysts at Mizuho from $44.00 to $54.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Mizuho's target price would suggest a potential upside of 12.66% from the stock's current price.

Other analysts have also issued research reports about the company. TD Cowen lifted their target price on Allegro MicroSystems from $38.00 to $45.00 and gave the stock a "buy" rating in a report on Friday, January 30th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Allegro MicroSystems in a research note on Wednesday. UBS Group increased their price objective on Allegro MicroSystems from $40.00 to $44.00 and gave the stock a "buy" rating in a research note on Friday, January 30th. Morgan Stanley upgraded Allegro MicroSystems from an "equal weight" rating to an "overweight" rating and set a $51.00 target price for the company in a report on Friday, February 13th. Finally, Needham & Company LLC increased their price objective on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the company a "buy" rating in a research report on Thursday. Ten equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $49.30.

Allegro MicroSystems Stock Down 6.7%

Shares of NASDAQ ALGM opened at $47.93 on Friday. The business's fifty day moving average price is $36.43 and its 200-day moving average price is $32.80. The stock has a market capitalization of $8.88 billion, a PE ratio of -599.13 and a beta of 2.02. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.65 and a quick ratio of 2.39. Allegro MicroSystems has a one year low of $19.75 and a one year high of $51.40.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.16 by $0.01. Allegro MicroSystems had a positive return on equity of 4.35% and a negative net margin of 1.57%.The firm had revenue of $243.19 million for the quarter, compared to analysts' expectations of $235.94 million. During the same quarter last year, the firm posted $0.06 EPS. The company's 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 research analysts anticipate that Allegro MicroSystems will post 0.27 EPS for the current year.

Institutional Trading of Allegro MicroSystems

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hantz Financial Services Inc. increased its holdings in Allegro MicroSystems by 86.9% in the third quarter. Hantz Financial Services Inc. now owns 901 shares of the company's stock valued at $26,000 after buying an additional 419 shares during the last quarter. Quent Capital LLC purchased a new position in shares of Allegro MicroSystems during the third quarter worth about $28,000. Parallel Advisors LLC grew its holdings in shares of Allegro MicroSystems by 42.8% during the first quarter. Parallel Advisors LLC now owns 1,008 shares of the company's stock worth $32,000 after buying an additional 302 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in shares of Allegro MicroSystems during the fourth quarter worth about $34,000. Finally, CIBC Private Wealth Group LLC grew its holdings in shares of Allegro MicroSystems by 14,844.4% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,345 shares of the company's stock worth $35,000 after buying an additional 1,336 shares during the last quarter. Hedge funds and other institutional investors own 56.45% of the company's stock.

Key Allegro MicroSystems News

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

• Positive Sentiment: Q4 results beat consensus on both revenue and EPS and showed strong year-over-year revenue growth (+26%), supporting the company’s top-line momentum. Allegro MicroSystems Reports Fourth Quarter and Fiscal Year 2026 Results
• Positive Sentiment: Analysts remain constructive: Needham raised its price target to $55 and kept a Buy rating, and Morgan Stanley highlighted additional upside potential, which could support longer-term share gains. Needham price target raise / Benzinga
• Neutral Sentiment: Management’s Q1 FY2027 guidance (EPS $0.190–0.230; revenue $245–255M) essentially matched Street expectations, leaving limited surprise in forward numbers. Investors often want upside to sustain post-earnings rallies. Company press release / slide deck
• Negative Sentiment: Despite the beat, the stock traded lower as investors reacted to the “in-line” guidance and possibly took profits after recent run‑up; several outlets note the pullback after the report. Allegro Microsystems sinks after offering up in line guidance
• Negative Sentiment: Coverage highlighting the share decline despite beat likely amplified selling; shorter-term technicals (recent high, elevated beta) may increase volatility. MSN: stock falls despite beat-and-raise

Allegro MicroSystems Company Profile

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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