2024-04-25 10:30:24 ET
Summary
- Allegro MicroSystems, Inc.'s revenue growth has decelerated due to the soft macro environment, and the upcoming earnings release is expected to show weakness in revenue dynamics.
- Allegro MicroSystems' upcoming earnings release is expected to see a notable decline in revenue and EPS, and Wall Street sentiment around the earnings release is weak.
- ALGM stock is currently slightly undervalued, but a 5% discount looks fair given all the temporary headwinds.
Allegro MicroSystems overview
Last June, I shared my cautious thesis about Allegro MicroSystems, Inc. ( ALGM ). I was cautious because my valuation analysis suggested ALGM's overvaluation. The thesis aged well, since ALGM declined by 25% since last June, substantially lagging the broader U.S. market. Today I want to analyze recent development and also share my opinion about the upcoming earnings release....
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For further details see:
Allegro MicroSystems Stock: I Am Still Cautious