Simply Wall St
4 min read
Monolithic Power Systems has recently seen its consensus analyst price target rise from $867 to about $979, which signals growing confidence among market experts. This upward revision reflects heightened expectations for the company’s revenue growth and a slightly lower perceived risk in its future outlook. Stay tuned to learn how you can keep abreast of further updates as the narrative for Monolithic Power Systems continues to evolve.
Recent analyst commentary has reflected an increasingly constructive outlook on Monolithic Power Systems, framed by a series of price target increases and upgrades from major research firms. Below is a synthesis of the current views on the stock.
š Bullish Takeaways
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Wolfe Research upgraded Monolithic Power to Outperform with a $1,200 price target, citing a “conservative path” to earnings per share of over $24 by 2027. Analyst Chris Caso noted that while valuation is elevated, the company has potential upside to estimates, making it compelling despite the premium.
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KeyBanc raised its price target to $1,050 from $950 and reiterated an Overweight rating, highlighting Monolithic’s strong position in the Blackwell Ultra market and its likelihood of winning future business in the Rubin R200 HGX. KeyBanc also raised estimates to reflect a better outlook in Enterprise Data share.
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Needham increased its price target to $1,025 from $820 and maintained a Buy rating, emphasizing diversified growth drivers across Enterprise Data, Communications, Automotive, and Compute & Storage segments. The firm’s analysis points to multiple product and customer ramps supporting continued expansion through 2025 and 2026.
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Loop Capital lifted its price target to $800 from $760 and kept its Buy rating, attributing robust revenue and market share gains throughout FY23 and FY24 to the success of the Enterprise Data business group. The firm projects that Monolithic Power should achieve at least 20 percent revenue growth into FY25.
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Across the board, analysts are rewarding Monolithic Power for its strong execution, ability to capture market share in key segments, and its clear communication with the investment community.
š» Bearish Takeaways
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Several analysts, including Wolfe Research, acknowledge that valuation is not cheap, with near-term upside potentially already reflected in the current share price.
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KeyBanc expects some softness in Enterprise contributions in 2025, modeling a 4 percent decline in that business line. This signals that execution risks and demand headwinds could temper the pace of growth against more optimistic company projections.
