Shares of Allegro MicroSystems fell Wednesday despite the chipmaker receiving several price-target hikes after its first-ever analyst day. At the event, the company said it sees continued strong growth ahead thanks to its business in automotive and clean energy markets. ALGM stock dropped along with the broader market.
The Manchester, N.H.-based company held its analyst day in New York City on Tuesday, with the analyst price hikes coming late Tuesday and early Wednesday. Allegro went public in October 2020 with its initial public offering priced at $14 a share.
On the stock market today, ALGM stock sank 1.5% to close at 44.47 amid an overall down day for stocks.
At its analyst day event, Allegro touted its focus on e-mobility, clean energy and automation. The company makes magnetic sensing and power integrated circuits.
Last year, automotive chip sales accounted for 69% of its total revenue. Industrial chip sales were its second-largest market at 19% of revenue.
ALGM Stock Earns Price-Target Hikes
At least four Wall Street firms raised their price targets on ALGM stock after the company's presentation.
"Despite the stock's run, we see no signs of Allegro's momentum slowing," TD Cowen analyst Joshua Buchalter said in a note to clients. He reiterated his outperform rating on ALGM stock and upped this price target to 52 from 44.
"The key theme throughout the presentation was Allegro's robust growth driven by both content and socket expansion as several verticals electrify and automate," Buchalter said. That includes electric vehicles, advanced driver-assistance systems, charging infrastructure, clean energy, robotics and data centers.
Allegro MicroSystems On IBD Stock Lists
On Jan. 17, ALGM stock broke out of a cup-with-handle base at a buy point of 34.24, according to IBD MarketSmith charts. It notched a record high 47.67 on March 9 before pulling back in the current market turmoil.
ALGM stock ranks first out of 31 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It has a best-possible IBD Composite Rating of 99.
Further, Allegro MicroSystems is on five IBD stock lists. They include the IBD 50, IPO Leaders, Stock Spotlight, Leaderboard and IBD Tech Leaders.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
