BMO Capital Markets upgraded MACOM Technology Solutions from Market Perform to Outperform on September 18, 2026. Analyst Harsh Kumar maintained a price target of $335 per share. The upgrade follows a 36% decline in the company's stock price from its peak in May 2026.
At the time of the upgrade, shares were trading near $263, indicating a potential upside of 27%. The forward price-to-earnings multiple for the semiconductor company has compressed from the high-50s to approximately 29x, which the analyst views as a more attractive entry point.
The investment thesis relies on the stability of MACOM's business in the datacenter and defense sectors. The company provides optical and connectivity components for AI infrastructure, while its defense segment supplies hardware for radar and electronic warfare, offering less cyclical revenue.
Currently, approximately 15 analysts cover MACOM with a consensus rating of Moderate Buy. The average price target is $341, with individual estimates ranging from $190 to $450. BMO's target remains slightly below the consensus average.
