Allegro Microsystems

ALGM · NASDAQ

$33.91+$0.74 (+2.23%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $33.17

ALGM analyst rating

BuyConsensus of 12 analysts over the last 12 months. 92% rate it a buy.

Strong buy0
Buy11
Hold1
Underperform0
Sell0

12-month price target · 14 analysts

Average $55.93 (+64.9% upside)

Low: $48.48
Now: $33.91
High: $65.10

Upgrades and downgrades

The latest rating actions, newest first

ALGM analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Wells Fargo	Oct 20, 2026	Maintains	Overweight	$56.00 → $45.00	67%
TD Cowen	Oct 19, 2026	Maintains	Buy	$48.00 → $40.00	39%
RBC Capital	Oct 2, 2026	Initiates	Outperform	$50.00	73%
Benchmark	Aug 13, 2026	Initiates	Buy	$60.00	60%
Mizuho	Jul 31, 2026	Maintains	Outperform	$67.00 → $58.00	59%
Morgan Stanley	Jul 31, 2026	Maintains	Overweight	$51.00 → $52.00	56%
TD Cowen	Jul 31, 2026	Maintains	Buy	$66.00 → $48.00	39%
Needham	Jul 30, 2026	Maintains	Buy	$55.00 → $57.00	44%
Barclays	Jul 20, 2026	Downgrade	Overweight → Equal-Weight	$48.00	64%
TD Cowen	Jul 13, 2026	Maintains	Buy	$70.00 → $66.00	39%

The case for and against

Updated Oct 18, 2026

Bull case

Allegro Microsystems is well positioned because its core magnetic-sensing leadership and growing power IC franchise align with durable secular demand from xEV, ADAS, data centers, and robotics, giving it multiple end markets to compound growth beyond the broader auto cycle. The company’s revenue mix is improving as Data Center rises to 17% of sales from 10% a year ago, current sensors have grown from essentially zero entering FY26 to more than 20% of the DC segment, and management expects Data Center revenue to more than double in FY27 while Auto still supports double-digit growth through FY28. Fundamentally, the case is strengthened by expanding content per vehicle and rack, gross margin progress from 48.2% to 51.1% with a path toward >55%, and attractive valuation at about 26x CY27E EPS versus a 3-year average of 38x.

Bear case

Allegro Microsystems is exposed to a highly cyclical demand base, with a large majority of revenue tied to automotive and industrial end markets and 60-65% of sales flowing through distributors, which can amplify shipment volatility when customers or distributors deplete inventories. The outlook is further pressured by management’s own identified risks of slower data center ramp, subdued automotive demand, and intensified China competition, while gross margin expansion remains at risk of stalling below 55% and FY26 non-GAAP operating margin targets still depend on meaningful execution. The company also faces capital-allocation and execution concerns, including acquisitive growth risk, China exposure at roughly 25% of revenue, and losses on its Polar Semiconductor investment, including $3.61M in the June-2026 quarter.

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