Monolithic Power initiated with a Buy at Citi

Citi initiated coverage of Monolithic Power (MPWR) with a Buy rating and $700 price target Following the recent 40% selloff due to share loss at Nvidia, Monolithic Power’s premium to the SOX index has fallen to a 10-year low of roughly 20%-30%, the analyst tells investors in a research note. The firm views this as an attractive entry point for investors seeking exposure to a high-quality analog semiconductor company that has consistently achieved 20%-plus sales and 30%-plus earnings growth over the past decade. It believes the company can sustain a 20% sales growth given the upcoming analog inventory replenishment.