TD Cowen Raises PT on Allegro MicroSystems (ALGM)

Allegro MicroSystems, Inc. (NASDAQ:ALGM) is one of the High Growth Semiconductor Stocks to Buy Now. Allegro MicroSystems, Inc. (NASDAQ:ALGM) has gained more than 9% over the past month, and the Street remains bullish on the stock with 92% of the 13 analysts covering the stock maintaining a buy rating.

​Recently, on June 22, TD Cowen analyst Joshua Buchalter raised the firm’s price target on the stock from $55 to $70 and maintained a Buy rating. The analyst noted that the improved price target comes after the firm updated its financial model, which reflects a more optimistic view of how the market is going to view Allegro MicroSystems in the future.

​As per the updated financial model, TD Cowen believes that investors will rediscover and re-rate the company’s exposure to two strong secular growth areas, including the automotive sector and AI data center. The firm sees both sectors as long-term with strong structural demand tailwinds. The firm expects the company to be strongly positioned to deliver profitable mid-teen percentage growth over the long-term.

Allegro MicroSystems, Inc. (NASDAQ:ALGM) develops and manufactures sensor integrated circuits and application-specific analog power ICs.

While we acknowledge the risk and potential of ALGM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALGM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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