MPWR - Monolithic Power Systems: Decelerating Growth Limits Stock Price Upside

• We analyzed Monolithic Power Systems' DC-DC power semicon business and projected its revenue growth of 21.64% based on its past 10-year average growth.
• Moreover, as the company’s growth outpaces the analog market at a forecasted CAGR of 4.8%, we projected its market share to increase to 2.2% by 2026.
• Lastly, we expect the company’s profitability to continue to improve as it grows with a forecasted gross and net margin of 57.9% and 26.2% by 2026.
• However, given its forecasted 5-year forward growth of 17%, compared to its past 5-year growth of 23%, we find the company fairly valued.

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