Steady pace, but solid execution

研报英文原文证据摘录

Steady pace, but solid execution

remains intact. e = Morgan Stanley Research estimates

Quarterly EPS ($)

2027e 2027e 2028e 2028e

Allegro continues to execute toward its LT model while reaching a new record in Quarter 2026 Prior Current Prior Current

data center and securing new design wins in robotics. That said, the rate of Q1 0.09 - 0.23a 0.32 0.32

Q2 0.13 0.26 0.26 0.40 0.40

change of auto in particular was steadier vs expectations & peers. Industrial drove Q3 0.15 0.29 0.30 0.45 0.45

the magnitude of Allegro's JunQa/SepQ guide's 3%/2% topline beat, while JunQa/ Q4 0.17 0.29 0.31 0.50 0.51

SepQ's auto guide was flattish/+MSD - a headline number that deviates from some e = Morgan Stanley Research estimates, a = Actual Company reported data

peers reporting of +HSD to mid-teens q/q growth for the same period. DC's guide to

outgrow total Industrial in SepQ (+MSD q/q guide) also implies a slight decel from

the 20s-30s% sequential growth we've seen since June of last year, though mgmt

framed this as a law of large numbers factor, not a deterioration in demand, and

guided to 2x revenue y/y for FY27.

The stock has sold off meaningfully over the last month, partly reversing the run-

up to ~$70 in late June, which we believe was driven by +ve sentiment around

robotics M&A and had moved expectations ahead of fundamentals. That said, we

view today's sell-off as a function of this rate of change perception both within auto

Morgan Stanley does and seeks to do business with

(relative to peers) and data center (relative to prior qrts), rather than fundamental companies covered in Morgan Stanley Research. As a result,

investors should be aware that the firm may have a conflict ofdynamics. Recall that Allegro bottomed ahead of peers two years ago and "took