[US Stock Alert] Allegro plummets on October 30: Guidance slowdown, data center delay, and target price downgrade

Allegro October 30 Major Drop Interpretation

Keywords: Guidance slowdown, data center delays, target price downward revision

1. On October 29, Allegro reported fiscal year 2027 Q2 revenue of $276.9 million, up 29.2% year-on-year, and adjusted EPS of $0.26, both exceeding expectations; however, Q3 revenue guidance of $278 million to $288 million implies an approximate year-on-year growth rate (at the midpoint) of 23%, which is a slowdown compared to 29% in Q2. In addition, some large data center projects have been delayed by one to two quarters, leading to a downward revision of growth continuity expectations.

2. After the October 29 earnings report release, institutional rating updates show that Mizuho maintained an “Outperform” rating but lowered its target price from $58 to $46; Barclays maintained “Hold” and cut its target from $48 to $45; Needham maintained “Buy” and adjusted its target price from $57 to $50. These target price downgrades correspond to the revised growth expectations.

(Disclaimer: This content is generated as a summary of publicly available information using AI technology. It is for reference only and does not constitute investment advice.)