Wells Fargo Lifts Allegro MicroSystems (ALGM) PT to $42 from $33, Keeps Overweight Rating

Allegro MicroSystems Inc. (NASDAQ:ALGM) is one of the best performing semiconductor stocks to buy now. Wells Fargo analyst Joe Quatrochi raised the firm’s price target on Allegro MicroSystems to $42 from $33, while maintaining an Overweight rating. Despite being positive on Allegro’s long-term prospects, Wells Fargo expressed caution ahead of the company’s FQ1 2026 earnings, expected after market close on July 31.

Allegro MicroSystems reported revenue of $193 million for FQ4 2025, which exceeded the high end of the company’s guidance. Automotive sales increased 8% sequentially in FQ4, and industrial and other sales increased 9% sequentially. For the full fiscal year 2025, revenue was $725 million, representing a 31% year-over-year decline.

In FQ4, cash flow from operations was $20 million, and free cash flow was $15 million. At the end of FQ4, Allegro had $131 million in cash and $345 million in debt. The company demonstrated accelerated innovation, releasing 50% more products compared to its IPO year, and targeting a $12 billion market opportunity. Allegro also secured new TMR wins in the biomedical market and a new automotive win in an XEV thermal management application.

Allegro MicroSystems Inc. (NASDAQ:ALGM) designs, develops, manufactures, and markets sensor integrated circuits/ICs and application-specific power ICs for motion control and energy-efficient systems.

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Disclosure: None. This article is originally published at Insider Monkey.