Ratings for Allegro Microsystems ( ALGM ) were provided by 10 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $29.0, a high estimate of $42.00, and a low estimate of $22.00. This current average has increased by 7.41% from the previous average price target of $27.00.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Allegro Microsystems's ( ALGM ) perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Allegro Microsystems ( ALGM ). This information provides a snapshot of how analysts perceive the current state of the company.

Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Allegro Microsystems ( ALGM ) compared to the broader market.

Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Allegro Microsystems's ( ALGM ) stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Allegro Microsystems's ( ALGM ) market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Allegro Microsystems ( ALGM ) analyst ratings.

Discovering Allegro Microsystems ( ALGM ): A Closer Look

Allegro Microsystems Inc ( ALGM ) is a designer, developer, fabless manufacturer, and marketer of sensor ICs and application-specific analog power ICs for automotive and industrial markets. Its Sensor IC allows customers to precisely measure motion, speed, position, and current, and Power ICs include high-temperature and high-voltage capable motor drivers, power management, and LED driver ICs. Its products are divided into three categories such as SENSE which includes Current Sensors, Switches and Latches, and Interface ICs among others; REGULATE which includes Regulators, ClearPower Modules, and LED Drivers; and DRIVE which includes BLDC Drivers, Brush DC, and others. Key revenue for the company is generated from Greater China and the rest from the United States, Japan, Europe, and other regions.

A Deep Dive into Allegro Microsystems's Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Allegro Microsystems's ( ALGM ) revenue growth over 3M faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -19.85%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Allegro Microsystems's ( ALGM ) net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -7.68%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Allegro Microsystems's ( ALGM ) ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -1.59%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Allegro Microsystems's ( ALGM ) ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.03%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Allegro Microsystems's ( ALGM ) debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.4, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.