ALGM - Mizuho sees chipmaker set to reap success from auto industrial markets

With the semiconductor industry enduring a shortage - one that has put a hard hit on the automotive market - Mizuho is reiterating its bullish stance on a small-cap chip supplier with a Street-high price target. Allegro MicroSystems (ALGM), which primarily serves the automotive and industrial markets, is set with some near-term tailwinds in both those areas, the firm says: from supply-constrained auto production with strong demand and some battery-electric vehicle traction globally, and ongoing industrial expansion momentum, with record PMIs and new orders. The company is strategically set up with secular tailwinds from the auto/EV, industrial and data center power integrated circuit markets, with leading market share in magnetic sensors, the firm says. The strong momentum in industrials - up 31% in the march quarter - could see more upside after may manufacturing PMIs (U.S. at 62.1, EU at 63.1, and with U.S. manufacturing new orders at a historical

For further details see:

Mizuho sees chipmaker set to reap success from auto, industrial markets