StoneX has initiated coverage of Monolithic Power Systems Inc. with a buy rating and a price target of $1,800, implying roughly 48% upside from the current share price of $1,219.
The firm highlighted MPWR’s 55% gross profit margin and 18.5% return on assets as key strengths, alongside its focus on monolithic integrated circuit design that reduces power consumption across consumer devices and hyperscale data centers. StoneX also pointed to the company’s lean expense profile and compact, cost-optimized solutions as competitive advantages.
Monolithic Power Systems reported Q2 2026 adjusted earnings of $6.50 per share on revenue of $980.6 million, a 22% sequential increase and a 48% year-over-year rise. The company raised its full-year outlook for enterprise data growth following the results, with management citing strong demand in the segment.
StoneX’s price target range spans $1,575 to $2,100, reflecting a bullish outlook on the stock’s valuation. The firm’s initiation follows upward revisions from other analysts. Truist Securities increased its target to $1,889, citing robust Q2 performance and Q3 guidance. KeyBanc raised its target to $2,100, noting over 160% year-over-year growth in the Enterprise Data segment. Needham elevated its target to $2,000, emphasizing strong data center performance and an optimistic fiscal 2026 revenue growth outlook for the segment.
The stock’s valuation remains a point of debate. InvestingPro analysis currently considers MPWR overvalued relative to its fair value estimate.
