Wells Fargo & Company Forecasts Strong Price Appreciation for Allegro MicroSystems (NASDAQ:ALGM) Stock

Key Points

• Wells Fargo raised its price target on Allegro MicroSystems from $48 to $56 and maintains an "overweight" rating, implying roughly a 17.8% upside from the then-current stock price.
• Multiple brokers (Mizuho, Needham, Evercore, TD Cowen, Morgan Stanley) have also boosted targets/ratings, leaving a consensus of "Moderate Buy" with an average price target around $50.70.
• Allegro reported a Q4 beat with $0.17 EPS and $243.2M revenue (+26% YoY) and set Q1 FY27 guidance of $0.190–0.230 EPS, but the guidance was considered only in-line by some investors, prompting mixed market reactions.

Allegro MicroSystems (NASDAQ:ALGM - Get Free Report) had its price target boosted by equities researchers at Wells Fargo & Company from $48.00 to $56.00 in a report released on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would suggest a potential upside of 17.80% from the stock's current price.

A number of other analysts have also recently commented on the company. Mizuho lifted their price target on Allegro MicroSystems from $44.00 to $54.00 and gave the stock an "outperform" rating in a research report on Friday. Evercore reissued an "outperform" rating and set a $53.00 price target on shares of Allegro MicroSystems in a research report on Friday. TD Cowen increased their price objective on shares of Allegro MicroSystems from $38.00 to $45.00 and gave the stock a "buy" rating in a research note on Friday, January 30th. Needham & Company LLC upped their price target on shares of Allegro MicroSystems from $45.00 to $55.00 and gave the company a "buy" rating in a report on Thursday. Finally, Morgan Stanley raised shares of Allegro MicroSystems from an "equal weight" rating to an "overweight" rating and set a $51.00 price objective on the stock in a research note on Friday, February 13th. Ten equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Allegro MicroSystems has a consensus rating of "Moderate Buy" and a consensus price target of $50.70.

Allegro MicroSystems Stock Down 0.8%

Allegro MicroSystems stock traded down $0.39 during midday trading on Friday, reaching $47.54. The company's stock had a trading volume of 669,018 shares, compared to its average volume of 2,405,783. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.65 and a quick ratio of 2.39. The stock has a market capitalization of $8.81 billion, a P/E ratio of -594.50 and a beta of 2.02. The stock's 50-day simple moving average is $36.43 and its 200-day simple moving average is $32.80. Allegro MicroSystems has a 52-week low of $21.41 and a 52-week high of $51.40.

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

Institutional Trading of Allegro MicroSystems

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Capital Research Global Investors boosted its holdings in Allegro MicroSystems by 5.8% in the 3rd quarter. Capital Research Global Investors now owns 16,824,722 shares of the company's stock worth $491,282,000 after buying an additional 920,365 shares during the last quarter. Vanguard Group Inc. boosted its stake in Allegro MicroSystems by 0.6% during the 3rd quarter. Vanguard Group Inc. now owns 14,293,465 shares of the company's stock worth $417,369,000 after purchasing an additional 87,526 shares during the last quarter. Invesco Ltd. boosted its holdings 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 during the last quarter. State Street Corp lifted its position in Allegro MicroSystems by 1.5% during the fourth quarter. State Street Corp now owns 5,359,488 shares of the company's stock worth $141,383,000 after buying an additional 78,203 shares in the last quarter. Finally, Adage Capital Partners GP L.L.C. boosted its stake in Allegro MicroSystems by 77.8% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 2,803,944 shares of the company's stock worth $73,968,000 after buying an additional 1,227,317 shares during the last quarter. Hedge funds and other institutional investors own 56.45% of the company's stock.

More Allegro MicroSystems News

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

• Positive Sentiment: Q4 beat on both EPS and revenue; quarterly revenue rose ~26% year-over-year, and EPS of $0.17 topped consensus — supports the stock’s rally on fundamentals. GlobeNewswire
• Positive Sentiment: Needham raised its price target to $55 and maintained a "buy" rating, signaling continued analyst optimism and potential upside. Benzinga
• Positive Sentiment: Mizuho raised its target to $54 with an "outperform" — another vote of confidence that can attract buyers. Benzinga
• Positive Sentiment: Independent analyst commentary (Morgan Stanley) suggests further upside potential for shares, which can support momentum. Morgan Stanley / Seeking Alpha
• Neutral Sentiment: Full earnings call transcript and slide deck are available for investors to check management commentary on demand, margins and backlog. Earnings Call Transcript
• Neutral Sentiment: Company posted formal results and materials (press release / slide deck) for review — useful for confirming guidance assumptions. Slide Deck / Press Release
• Negative Sentiment: Shares sold off in some coverage despite the beat-and-raise, as investors digested guidance that was roughly in line with expectations rather than above — indicates sensitivity to forward-looking metrics. MSN
• Negative Sentiment: Newsflow noted the company “sank” after providing guidance that investors viewed as merely in-line (Q1 FY27 EPS guidance 0.190–0.230 and revenue $245–255M), which limited upside and prompted profit-taking. Seeking Alpha
• Negative Sentiment: Market commentary explains why shares traded lower intraday despite beats — short-term trading dynamics and expectations around margin/guide improvements remain risk points. MSN

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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