RBC Capital initiates coverage of Allegro MicroSystems with Outperform rating and $50 price target
RBC Capital began coverage of Allegro MicroSystems (ALGM) on October 2, 2026, assigning an Outperform rating and a $50.00 price target. The firm expects roughly 20% revenue growth and margin expansion over the next two years, driven by automotive, data‑center and xEV demand. The initiation sparked a share price rise of 6‑9% that day. The company also reported first‑quarter fiscal 2027 revenue of $259.24 million, up 27% year‑over‑year.
Why it matters
RBC’s bullish outlook and $50 target lifted ALGM’s stock, creating short‑term upside for traders (the stock rose up to 8.7% on the day). The firm’s growth expectations suggest the company could improve earnings momentum, which may attract further buying.
Key facts
- 1RBC Capital set a $50.00 price target for ALGM. investing.com
- 2RBC assigned an Outperform rating to ALGM. investing.com
- 3RBC expects about 20% revenue growth over the next two years. investing.com
- 4ALGM reported Q1 fiscal 2027 revenue of $259.24 million. investing.com
- 5Q1 sales were up 27% year‑over‑year. investing.com
- 6ALGM guided Q2 revenue of $265 million to $275 million. quiverquant.com
Summary written by AlphAI from 6 of 6 sources. Not investment advice. Figures are as stated by the linked sources.