MACOM Technology Solutions (MTSI) PT Raised to $175 at Needham

Needham analyst N. Quinn Bolton raised the price target on MACOM Technology Solutions (NASDAQ: MTSI) to $175.00 (from $150.00) while maintaining a Buy rating.

The analyst commented, "MACOM posted a beat and raise, driven by stronger revenue, gross margin, and lower OpEx. Our key takeaways include: 1) FY26 revenue is expected to grow double digits Y/Y (mid-teens %), led by Data Center. We expect stronger operating leverage, driving even faster earnings growth. Our FY26 revenue comes up slightly (+15% vs. +14%), but we now model EPS $0.10 higher; 2) Data Center strength is expected to continue through FY26, driven by 200G per lane products servicing 1.6T applications. Notably, three customers are now in production for its 800G LPO solutions, with more expected in the year; and, 3) Gross margin is expected to increase 20-50bps each quarter in FY26, allowing us to raise our gross margin estimates. Our PT increases to $175, based on a 35x multiple of our FY27 NG EPS estimate of $5.00."

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