CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target price to $475 from $550, shifting to a P/E of 30x our 2025 EPS view, which we start at $15.83, above peers but below its five-year historical average of 45x. We raise our 2023 EPS estimate to $12.13 from $11.93 and keep 2024’s at $13.76. MPWR posts Q3 EPS of $3.08 vs. $3.53, beating the $3.06 consensus. Sales fell 4.1%, hurt by declines in Consumer (-30%), Communications (-35%), and Industrials (-28%). Enterprise Data growth (31%) benefited from higher GPU/CPU momentum, while Storage/Computing (+15%) and Automotive (+9.3%) also rose. Gross margin compressed to 55.7% from 59.0%, hurt by lower volume and higher inventory related costs. Although orders have improved in recent months and inventories appear healthier, partly reflecting seasonality, we think visibility remains extremely low and question the sustainability of consumer related end-market strength. We like MPWR’s attractive balance sheet with about $1.04M in cash and absence of debt. DIOs improved by 30 days to 171 from Q2.