ALGM
Allegro Microsystems Inc
NASDAQ: ALGM · TECHNOLOGY · SEMICONDUCTORS
$59.00
+9.30% today
Updated 2026-06-18
Market cap
$9.39B
P/E ratio
—
P/S ratio
10.55x
EPS (TTM)
$-0.08
Dividend yield
—
52W range
$22 – $54
Volume
2.3M
Allegro Microsystems Inc (ALGM) Financial Forecast & Price Target 2030
Research-backed projections from analyst consensus, management guidance, and sector analysis.
Research-backed ALGM price target 2030 projection accounting for share dilution, balance sheet debt, and time value of money.
Current price
$59.00
Today
Analyst consensus
$51.80
-12.20% · 12M
2030 Base
$50.86
-13.80% future
NPV today
$26.30
@ 16% WACC
12 analysts:
10 Buy1 Hold1 Sell
Management guidance
At Allegro's February 2026 Investor Day, management outlined a strategic plan targeting 20% annual revenue growth through fiscal 2028, with gross margin expansion toward 55%+ and operating margin improvement to 20%+. The company is positioned to capture growth in automotive electrification, industrial automation, and data center power/sensing applications, with CEO Michael Doogue emphasizing AI-driven infrastructure spending as a key tailwind through 2028.
Sources: Management guidance, analyst consensus, sector analysishigh confidence
ALGM · Allegro Microsystems Inc · Revenue & price projection · 2023–2030E
Actual / 2030 target Projected revenue Base case price Bull to bear range
Bear case (2030)
$26.80
NPV today: $13.86
Base case (2030)
$50.86
NPV today: $26.30
Bull case (2030)
$110.99
NPV today: $57.39
WallStSmart.com
ALGM financial forecast · Research-backed projections
| Metric | 2026 | 2027 (E) | 2028 (E) | 2029 (E) | 2030 (E) ★ |
|---|---|---|---|---|---|
| Revenue | $0.9B | $1.4B | $1.6B | $1.9B | $2.3B |
| Revenue growth | 22.8% | 24.1% | 21.4% | 18.5% | 17.2% |
| Net margin | — | 21.0% | 24.2% | 27.0% | 28.4% |
| EPS | $0.38 | $1.52 | $2.11 | $2.78 | $3.42 |
| Diluted shares | — | 187M | 188M | 189M | 190M |
| Net debt | — | $-69.74M | $-196.25M | $-346.20M | $-521.97M |
| P/S multiple | — | 4.0x | 4.0x | 4.0x | 4.0x |
| Implied price (base) | — | $29.27 | $35.94 | $43.03 | $50.86 |
★ 2030E is the model's terminal target year. Implied price = (Revenue × P/S − Net debt) ÷ Diluted shares.
Scenario detail · Three drivers, three outcomes
| 2030E driver | Bear | Base | Bull |
|---|---|---|---|
| Revenue | $2.3B | $2.3B | $2.3B |
| P/S multiple | 2.0x | 4.0x | 9.0x |
| Diluted shares | 190M | 190M | 190M |
| Net debt | $-521.97M | $-521.97M | $-521.97M |
| Implied P/E † | 8x | 15x | 33x |
| 2030 Price | $26.80 | $50.86 | $110.99 |
| NPV @ 16% | $13.86 | $26.30 | $57.39 |
† Implied P/E: Multiples remain elevated across all three scenarios because ALGM is valued primarily on revenue scale during its growth phase, not near-term earnings power. Lower P/E in the bear case reflects multiple compression, but the absolute level stays high since 2030E still represents a hypergrowth-to-mature transition year.
EV to per-share bridge · How we get to $50.86 base case
ALGM catalysts and risks
Growth catalysts
+ AI data center power and sensing chip adoption driving hyperscaler capex (Nvidia infrastructure roadmap tailwinds)
+ Automotive EV market expansion requiring higher-capacity current sensing and isolated gate drivers (20%+ annual EV growth through 2030)
+ Industrial automation and robotics growth (7-9% CAGR through 2028) with Allegro's board addition of Cognex ex-CEO Robert Willett signaling strategic focus
+ Gross margin recovery through China localization strategy and manufacturing efficiency gains (targeting 55%+)
+ Multi-year customer commitments and backlog conversion supporting revenue consistency through 2027-2028
Key risks
- Semiconductor cyclicality and pricing pressure if data center capex moderates post-2027
- China competition in current sensing and power IC markets; geopolitical supply chain exposure
- Company currently loss-making (FY2026 net loss -$14.9M) with negative margins — profitability inflection must occur by FY2028 or valuation compresses sharply
- Automotive cycle downturn or EV adoption delays would impact 40%+ of revenue mix
- Premium valuation (P/S 10x, Forward P/E 32.7x) leaves limited margin for error; stock has high beta (1.97) and volatility (8.84%)
Methodology · Allegro Microsystems Inc 2030 stock forecast model
Allegro Microsystems Inc 2030 price target is calculated using WallStSmart's research model. Revenue projections are derived from analyst consensus across 12 Wall Street analysts, management guidance from the latest earnings call, and sector growth forecasts. The model is built on five core components:
| 1. Share dilution | Projected from per-ticker schedule of SBC + equity raise activity, compounding year by year (2% cumulative for ALGM by 2030) |
| 2. Net debt | EV minus net debt yields equity value; debt projected from capex cycle trajectory ($-521.97M by 2030) |
| 3. Time value | NPV calculated using 16% WACC (CAPM: beta 2.017) |
| 4. Multiple framework | P/S compresses with scale: bear 2.0x / base 4.0x / bull 9.0x |
| 5. Scenario design | Bull/Base/Bear vary revenue, margin, shares, debt, and multiple independently |
WallStSmart research model · Not financial advice · Past performance is not indicative of future results · Last researched: June 12, 2026.
ALGM price target FAQ
What is the ALGM price target for 2030?
WallStSmart's Allegro Microsystems Inc 2030 base case is $50.86 per share, with a bull case of $110.99 and bear case of $26.80. The NPV of the base case discounted to today at 16% WACC is $26.30.
How is the Allegro Microsystems Inc 2030 stock forecast calculated?
The ALGM 2030 projection multiplies projected revenue by a growth-adjusted P/S multiple to derive enterprise value, subtracts projected net debt to get equity value, then divides by diluted shares outstanding accounting for dilution from stock-based compensation and equity raises.
Why does the ALGM price target account for dilution?
Allegro Microsystems Inc is projected to grow diluted share count from 186M to 190M by 2030 (a 2% increase) through stock-based compensation and capital raises. Ignoring this would inflate the price target by approximately 2%.
What is the analyst consensus on ALGM stock?
12 analysts cover ALGM with an average 12-month price target of $51.80. The 2030 projection extends this framework with longer-horizon assumptions including dilution and time value of money.