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.

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