Update shared on 07 Nov 2025
Fair value Increased 5.17%Analysts have raised their price target for MACOM Technology Solutions Holdings by $7.71 to $157.00. They cite stronger projected profit margins and revenue growth, supported by consistent execution and broad end market potential.
Analyst Commentary
Recent street research highlights both optimism and caution regarding MACOM Technology Solutions Holdings, as analysts adjust their outlooks in response to the company’s quarterly performance and market positioning.
Bullish Takeaways- Bullish analysts point to solid quarterly results and a positive Q4 outlook as signals of MACOM's consistent execution and operational excellence.
- Higher-than-expected gross profit margins are seen as a major catalyst for the recent upward price target revisions. This suggests improved profitability across core segments.
- Secular growth drivers in key end markets, including defense, telecommunications, and data centers, are expected to fuel sustained revenue expansion.
- MACOM is benefiting from delivering industry-leading RF power, frequency, and data rates. This establishes the company as a technology leader and partner of choice for diverse customers.
- Some analysts caution that the stock’s current valuation appears nominally expensive, even when accounting for strong execution and favorable growth scenarios.
- Questions remain around the sustainability of margin expansion, especially if end market demand moderates or competitive pressures increase.
- Upside potential is recognized, but there is an acknowledgment of risks tied to maintaining performance consistency in the face of broader economic uncertainties.
What's in the News
- Issued earnings guidance for fiscal Q1 ending January 2, 2026, with expected revenue between $265 million and $273 million (Company Guidance).
- Announced a new chipset enabling high speed, low latency PCIe and CXL connectivity over optical fiber, supporting PCIe 6.0 extension up to 100 meters, demonstrated at CIOE and upcoming ECOC 2025 (Product Announcement).
- Set to showcase the latest analog connectivity solutions for data center, telecom, and AI/ML applications at ECOC 2025 in Copenhagen. Highlights include advancements in 3.2T transmit, 1.6T technologies, PCIe 6.0 optical, and the 100G LPO ecosystem (Product Announcement).
- Scheduled to exhibit a broad portfolio of RF, microwave, and mmWave product solutions at EuMW 2025 in Utrecht. The exhibit will include SATCOM, radar, RF-over-Fiber, and high reliability components, as well as foundry services for GaAs and GaN MMIC technologies (Product Announcement).
Valuation Changes
- Consensus Analyst Price Target has risen from $149.29 to $157.00, reflecting increased confidence in the company’s outlook.
- Discount Rate has increased slightly, up from 10.21% to 10.72%. This suggests a modest adjustment in perceived risk or required return.
- Revenue Growth projections have improved from 11.19% to 12.69%. This indicates expectations for stronger top-line expansion.
- Net Profit Margin is now forecast at 56.87%, up from 47.04%. This highlights expectations for enhanced profitability.
- Future P/E ratio has fallen from 27.60x to 21.93x. This suggests the stock may offer better value relative to anticipated earnings growth.
Disclaimer
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