Update shared on 24 Nov 2025
Fair value Increased 17%The analyst price target for MACOM Technology Solutions Holdings has been raised from $157 to $183. This change reflects analysts' confidence in the company's solid quarterly results, stronger than expected sales, and its growth prospects across key end markets.
Analyst Commentary
Bullish analysts have recently expressed increased confidence in MACOM Technology Solutions Holdings, supported by several factors highlighted in recent research notes:
Bullish Takeaways- Forecasts for growth remain robust. Sales in the latest quarter surpassed guidance and expectations, reflecting strong demand across MACOM's core markets.
- Improved gross margins, particularly in Q3, signal effective management and an ability to counter prior headwinds associated with recent acquisitions.
- MACOM's performance is viewed as consistent, with execution delivering on financial targets and supporting justification for premium valuation, even though shares appear nominally expensive.
- The company is positioned to benefit from secular growth drivers in defense, telecommunications, and datacenter applications. This may enable it to achieve over $1 billion in annual sales for the first time in its history.
- Some analysts note the current stock valuation is on the higher side and consider it justified only if the company continues its record of solid execution and sustained growth.
- Past quarters saw margin pressure from integration challenges related to recent acquisitions. These challenges could resurface if not carefully managed.
- Achieving projected growth may rely heavily on ongoing expansion in key end markets. Any slowdown in these sectors could temper future expectations.
What's in the News
- Issued new earnings guidance for the fiscal first quarter ending January 2, 2026, with expected revenue between $265 million and $273 million (Company Guidance).
- Announced availability of a new chipset that extends PCI Express (PCIe) and Compute Express Link (CXL) connectivity up to 100 meters over optical fiber, supporting emerging data center and high-performance computing requirements (Product Announcement).
- Will showcase its latest analog connectivity solutions at the European Conference on Optical Communication (ECOC) 2025, including next generation 3.2T transmit capabilities and innovations in PCIe 6.0 optical to support data rates up to 400G per lane (Event Announcement).
- Set to exhibit a broad RF, microwave and millimeter wave product portfolio at European Microwave Week (EuMW) 2025, highlighting advances for space, radar, RF-over-fiber and high reliability applications (Event Announcement).
Valuation Changes
- Consensus Analyst Price Target has increased from $157 to $183. This represents a significant upward revision based on recent performance and outlook.
- Discount Rate has edged down slightly from 10.72% to 10.69%, reflecting a marginal reduction in perceived risk or cost of capital.
- Revenue Growth forecasts have risen from 12.69% to 13.72%, suggesting improved expectations for the company’s top-line expansion.
- Net Profit Margin estimate has decreased significantly from 56.87% to 32.68%, indicating an expectation of lower profitability ratios moving forward.
- Future P/E ratio has nearly doubled, climbing from 21.93x to 40.58x. This signals a higher market valuation relative to projected earnings.
Disclaimer
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