Benchmark raised its price target on MACOM Technology Solutions (NASDAQ:MTSI) to $260.00 from $190.00 on Friday and left its Buy rating in place, reflecting an upgraded view of the company after a quarter that exceeded guidance and analyst expectations.
According to InvestingPro data cited in the report, 12 analysts have recently revised their earnings estimates for MTSI upward, signaling growing confidence in the company’s near-term prospects. Benchmark highlighted MACOM’s operational results and reiterated that the firm remains well positioned within its end markets.
MACOM delivered a quarter that showed broad-based growth across its three end markets and offered guidance that outpaced expectations. The company reported a record backlog and posted a book-to-bill ratio of 1.3, metrics Benchmark and market data say support improved forward visibility for revenue conversion. MTSI’s market capitalization is reported at $17.6 billion, and the stock has been trading close to a 52-week high of $236.80; however, InvestingPro analysis suggests the shares are trading above their Fair Value.
Datacenter demand was the standout driver during the quarter. MACOM revised its datacenter revenue outlook to 35-40% year-over-year growth for the year, a meaningful increase from its prior projection of 20%. The company also noted that there is further upside potential in this end market, a factor that Benchmark and other analysts have taken into account when increasing earnings estimates and raising price targets.
In the Industrial & Defense market, the company saw strengthening demand on the defense side described as broad-based, while the Telecom segment benefited from SatCom and 5G-related opportunities. Benchmark emphasized MACOM’s expanding portfolio of differentiated optical and RF solutions as an important contributor to the company’s growth trajectory.
Benchmark framed the company’s recent performance as evidence of strong execution and improving unit economics, highlighting improving operating leverage and a favorable gross margin trajectory. The firm described MACOM as "one of the most attractive names in the connectivity space."
Quarterly financials and analyst responses
MACOM reported first-quarter fiscal 2026 revenue of $271.6 million, representing a 4.0% sequential increase and a 24.5% increase year-over-year. That revenue figure exceeded the company’s guidance midpoint and topped both Stifel’s and the broader market estimate of $269.0 million. Adjusted earnings per share came in at $1.02, beating the projected $0.9973.
Following the quarterly results, Stifel raised its price target for MACOM to $255 from $215 and maintained a Buy rating. Despite the upside in revenue and adjusted EPS relative to estimates, MACOM’s stock declined in pre-market trading, indicating a mixed initial market reaction to the reported results and guidance.
Performance metrics and outlook
Over the last twelve months, MACOM’s revenue growth has been reported at 29.12%. Analysts cited in the article are projecting 21% revenue growth for fiscal year 2026. The notable acceleration in the datacenter segment, the record backlog and the 1.3 book-to-bill ratio are central elements Benchmark used to justify a higher valuation and an elevated price target.
While Benchmark and other analysts have increased earnings expectations and price targets, InvestingPro’s valuation view that the stock is trading above Fair Value is also highlighted, as is the mixed market reaction following the earnings release. These dynamics reflect both the favorable operational signals presented by MACOM and the market’s ongoing appraisal of valuation relative to forward forecasts.
All figures and analyst actions referenced are those reported alongside MACOM’s recent quarterly announcement and associated analyst commentary.