Bank of America Asserts Allegro MicroSystem’s Inc. (ALGM) ‘Buy’ Rating, Cuts Price Target

Core Viewpoint - Allegro MicroSystems Inc. is considered one of the top lidar stocks to invest in, despite a recent price target reduction by Bank of America from $45 to $38 while maintaining a 'Buy' rating [1][2]. Company Overview - Allegro MicroSystems develops and supplies semiconductor-based components and systems for lidar, having acquired Voxtel in 2020, which specializes in lidar systems. Their product offerings include eye-safe Indium Gallium Arsenide (InGaAs) photodetectors and silicon-based devices for long-range, high-resolution lidar applications in the automotive sector [4]. Industry Context - The automotive semiconductor sector is facing challenges, with Bank of America projecting a 7% decline in sales for the next year, estimating $50 billion in sales, and a modest growth of 2.2% from 2025 to 2027 [3]. - Analysts express concerns over a "lumpy recovery path" for analog semiconductor vendors, exacerbated by tariff uncertainties and increased competition, particularly from China [3].