Truist Securities analyst William Stein has initiated coverage on MACOM Technology Solutions Holdings (MTSI) with a Buy rating and a price target of $125. MACOM Technology is a leading supplier of radio frequency (RF) components in a growing industry. The company serves various end markets, including defense, industrial, data centers (AI), and telco, with recent acquisitions boosting its financial metrics.
Stein highlights the growth drivers for MACOM Technology, including optical components for data center communications, components for commercial satellites, and semiconductor technology expansion into various end markets. Despite being affected by tariffs, the company is expected to see moderate impacts due to its revenue and manufacturing split.
While Stein’s optimistic model was adjusted due to tariffs, he forecasts strong revenue and EPS figures for MACOM Technology by 2026. The company historically trades at a premium to its peers, suggesting a positive outlook for investors. As of Friday, MTSI stock was up by 0.15% at $99.42.
Overall, MACOM Technology is well-positioned for growth in the coming years, with Stein projecting a 12% increase in medium-term growth driven by multiple factors. Investors are advised to keep an eye on the company as it continues to expand and innovate within the RF component industry.
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