Update shared on03 Oct 2025
Fair value Increased 2.87%The analyst price target for Monolithic Power Systems has increased from $843.23 to $867.46, reflecting analysts' optimism about the company's expanding product share and multiple growth drivers across Enterprise Data, Communications, and Automotive sectors.
Analyst Commentary
Recent updates from street research highlight a wave of price target increases for Monolithic Power Systems, underscoring positive sentiment surrounding the company’s long-term growth drivers. Analysts continue to monitor industry and company-specific factors influencing the outlook.
Bullish Takeaways
- Analysts increased price targets, supported by Monolithic Power’s expanding market share in critical sectors such as Enterprise Data and Automotive.
- There is sustained confidence in product and customer ramps driving diversified growth, particularly in Enterprise Data and Communications for the second half of 2025 and into 2026.
- Enterprise Data revenue has shown significant historical growth and is expected to meet or exceed consensus expectations in the coming fiscal year.
- Increased exposure to high speed optical modules and new product launches are viewed as enhancing the company’s valuation and paving the way for further market share gains.
Bearish Takeaways
- Some analysts remain cautious on short-term prospects for the Enterprise segment, modeling a more moderate decline than company guidance. There are concerns about near-term demand and sub-seasonal growth in the latter half of the year.
- Mixed supply chain findings and tariff-related pull-ins are highlighted as factors that could temper upside potential or create volatility across quarters.
- Although China remains resilient as a region, slowing momentum is noted as a lingering risk factor for overall company revenue growth.
What's in the News
- The company completed repurchase of 4,000 shares valued at $2.71 million under the buyback announced on February 6, 2025 (Buyback Tranche Update).
- The company issued new financial guidance for the third quarter of 2025, projecting revenue between $710 million and $730 million and a GAAP gross margin of 54.9% to 55.5% (Corporate Guidance: New/Confirmed).
- The company announced a strategic partnership with ECARX Holdings to collaborate on automotive intelligence, robotics, and AI, with the goal of building a global supply chain and accelerating product rollout and market entry (Strategic Alliances).
Valuation Changes
- Consensus Analyst Price Target has risen from $843.23 to $867.46. This reflects a modest upward adjustment in perceived fair value.
- Discount Rate has increased slightly from 9.96% to 10.08%, indicating a marginally higher required return or risk assessment.
- Revenue Growth expectations have ticked up from 15.48% to 15.66%. This suggests a small improvement in growth outlook.
- Net Profit Margin has edged down from 26.20% to 25.54%, reflecting a slight decrease in forecasted profitability.
- Future P/E Ratio estimate has risen from 49.15x to 51.79x, signaling higher anticipated earnings multiples going forward.
Disclaimer
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