In a report released today, Rick Schafer from Oppenheimer maintained a Buy rating on Monolithic Power (MPWR), with a price target of $150. The company’s shares closed yesterday at $132.
Schafer noted:
“MPWR reported 4Q results Tuesday. Sales/EPS of $153.5M/$0.99 just topped consensus $153.5M/$0.98E though demand clearly softened during the quarter reflecting current macro realities no one in semis is immune to. 1Q outlook of $141M/ $0.84 was below Street $146.9M/$0.90E and our $145M/$0.88E. More surprisingly, GM was down 50bps the first back-step since the last semiconductor correction in 2015/2016. We attribute 4Q GM to less favorable mix as new product launches by customers were delayed. 1Q mix improves, though GM is expected flat related to likely inventory reserves. Despite near-term macro uncertainty/correction, MPS remains poised for out-sized growth/upside, led this year by diverse greenfield opportunities in server, auto/industrial, and comms. Our top structural growth/GM story, we remain long-term buyers with a $150 target.”
According to TipRanks.com, Schafer is a top 100 analyst with an average return of 14.7% and a 68.4% success rate. Schafer covers the Consumer Goods sector, focusing on stocks such as Akoustis Technologies, Skyworks Solutions, and Texas Instruments.
Currently, the analyst consensus on Monolithic Power is a Strong Buy with an average price target of $148.33.
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The company has a one-year high of $152.21 and a one-year low of $101.99. Currently, Monolithic Power has an average volume of 337.9K.
Based on the recent corporate insider activity of 69 insiders, corporate insider sentiment is negative on the stock.
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Monolithic Power Systems, Inc. engages in the provision of power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications. It operates through the following segments: Consumer, Industrial, Computing and Store, and Communications.
