Evercore Remains Bullish on Allegro MicroSystems (ALGM), Cites Robust Automotive and Data Center Cycles

Core Insights - Allegro MicroSystems, Inc. (NASDAQ:ALGM) is identified as an overlooked tech stock with strong growth potential [1] - Evercore ISI raised its price target for Allegro from $37 to $49, maintaining an "Outperform" rating, driven by robust automotive and data center cycles [2] - The company reported a 14% year-over-year sales growth in Q2, reaching $214 million, with significant contributions from e-Mobility and Industrial segments [3] Financial Performance - Q2 sales reached $214 million, reflecting a 14% YoY growth, with e-Mobility and Industrial segments growing by 21% and 23% respectively [3] - Non-GAAP EPS for the quarter was $0.13, exceeding expectations [3] - Q3 sales are projected to be between $215 million and $225 million, with gross margins expected in the 49%-51% range and non-GAAP EPS between $0.12 and $0.16 [4] Growth Drivers - Short-term growth is supported by design wins in Advanced Driver-Assistance Systems (ADAS), electric vehicle (xEV) powertrains, and data center power supplies [4] - Long-term growth is bolstered by new high-voltage gate drivers for silicon carbide technology [4] - The company is advancing in automotive, clean energy, and industrial automation sectors by providing efficient and sustainable technology solutions [5]