Allegro MicroSystems initiated with an Equal Weight at Morgan Stanley

Morgan Stanley analyst Joseph Moore initiated coverage of Allegro MicroSystems (ALGM) with an Equal Weight rating and $21 price target Allegro is a fabless manufacturer of magnetic sensing with approximately 75% exposure to automotive, the analyst tells investors in a research note. The firm says its neutral rating reflects its view that the automotive semiconductor market will enter a period of stagnation with slower content growth across electric vehicles and internal combustion engines, posing a headwind to Allegro’s revenue growth.