Overview
Stifel analyst Tore Svanberg increased his price target for MACOM Technology Solutions to $255.00 from $215.00 on Friday while maintaining a Buy rating. The move sits alongside a broader analyst consensus of "Buy" (1.69 rating) based on InvestingPro data, with price targets reported in a range from $160 to $295. MACOM shares are trading at $227.80, close to their 52-week high of $236.80.
Quarterly results and outlook
The price target revision follows MACOM’s fiscal first-quarter 2026 results. The company reported sales of $271.6 million, representing a 4.0% sequential increase and a 24.5% year-over-year gain. That top-line performance exceeded the company’s guidance midpoint and was roughly 1.0% higher than Stifel’s and Street estimates of $269.0 million.
MACOM’s revenue over the trailing twelve months has risen 29.12%, bringing total revenue to $1.02 billion. Sequential growth in the most recent quarter was primarily supported by the Data Center segment, while the Telecom division outperformed expectations that had forecast a slight sequential decline.
Management raised guidance for the fiscal second quarter of 2026, projecting sales of $285.0 million at the midpoint, a 4.9% sequential increase. That outlook is 3.9% above Stifel’s prior estimate of $274.4 million and is expected to reflect sequential growth across all end markets, led by Data Center.
Valuation and market reaction
Stifel’s new $255 price target corresponds to a 31.6x CY27E price-to-earnings multiple, and the firm said MACOM is well-positioned to surpass $1 billion in sales for the first fiscal year in its history. By contrast, the company currently trades at a P/E ratio of 99.22. Over the past year, MACOM has delivered a price total return of 75.91%.
InvestingPro’s assessment flags MACOM as appearing overvalued on a Fair Value basis, and the company is included on its Most Overvalued list for high-growth technology names. Despite the quarter’s upside on earnings and revenue, MACOM’s shares declined in pre-market trading following the results.
Earnings detail
MACOM reported adjusted earnings per share of $1.02 for the fiscal first quarter of 2026, topping the consensus forecast of $0.9973. Revenue results were similarly above expectations, with the reported $271.6 million surpassing the anticipated $269.02 million. These results constitute a strong start to the fiscal year from an operational standpoint.
Nevertheless, the stock’s pre-market dip indicates investor focus on valuation and market sentiment rather than solely on the quarter's operating metrics. Market participants will be watching upcoming developments and the company’s execution against the raised full-year sales threshold as the fiscal year progresses.
Implications for markets and sectors
- Data Center equipment demand is a primary near-term growth driver for MACOM, influencing revenue momentum.
- Telecom end-market performance surprised to the upside, suggesting resilience in that sector for MACOM.
- Valuation metrics and investor reaction underline sensitivity in high-growth technology and semiconductor-related equities.