Loop starts Allegro at Buy, says ‘checks boxes’ in secular growth drivers

Loop Capital initiated coverage of Allegro MicroSystems (ALGM) with a Buy rating and $30 price target While cyclical headwinds my limit Allegro’s bounce off the bottom, at least in the near-term, the firm believes investors should overweight stocks/companies with high exposure to the automotive end market, and overweight the companies exposed to the fastest growing automotive trends. Allegro “checks all these boxes” in secular growth drivers, and its auto+industrial end market exposure may be particularly well suited for an environment with falling interest rates, the analyst tells investors in a research note.