Analyst Expectations For MACOM Technology Solns's Future

Analysts' ratings for MACOM Technology Solns (NASDAQ:MTSI) over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for MACOM Technology Solns, presenting an average target of $138.75, a high estimate of $160.00, and a low estimate of $125.00. A 2.06% drop is evident in the current average compared to the previous average price target of $141.67.

Investigating Analyst Ratings: An Elaborate Study

The analysis of recent analyst actions sheds light on the perception of MACOM Technology Solns by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|-------------------------|---------------|---------------|--------------------|--------------------| |Vivek Arya |B of A Securities |Lowers |Buy | $130.00|$160.00 | |William Stein |Truist Securities |Announces |Buy | $125.00|- | |Tim Savageaux |Northland Capital Markets|Raises |Outperform | $140.00|$105.00 | |David Williams |Benchmark |Maintains |Buy | $160.00|$160.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to MACOM Technology Solns. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of MACOM Technology Solns compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for MACOM Technology Solns's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of MACOM Technology Solns's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on MACOM Technology Solns analyst ratings.

Unveiling the Story Behind MACOM Technology Solns

MACOM Technology Solutions Holdings Inc is a provider of analog, digital, and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Japan, Singapore, South Korea, and other countries across the world.

MACOM Technology Solns's Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: MACOM Technology Solns's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 38.8%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -76.81%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): MACOM Technology Solns's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -14.71%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -9.31%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: MACOM Technology Solns's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.46, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.