Stifel has raised its price target on Monolithic Power Systems (NASDAQ:MPWR) to $1,300 from $1,250 and retained a Buy rating as the company approaches its next earnings release. The shares are trading at $1,164.83, about 0.97% below a 52-week high of $1,199.76, after returning 78.96% over the past year.
The research firm expects Monolithic Power to top consensus estimates for the December quarter. Stifel cites a mix of additional customer contributions, strong capital expenditure results from hyperscalers, healthy storage demand for SSD power delivery and emerging indications of a broader recovery in analog markets as the basis for its view.
Stifel’s model sets December-quarter revenue at $740.0 million, implying a 0.4% sequential rise, and non-GAAP earnings per share of $4.73. For the first quarter of 2026, the firm said it expects Monolithic Power to lift guidance versus Stifel’s current estimate of $732.6 million in revenue - a 1.0% sequential decline in the firm’s baseline - and non-GAAP EPS of $4.62.
Stifel’s new price target is derived from an 18.8x enterprise value-to-sales multiple. The research house indicated it expects analysts to revise estimates upward after the company’s earnings release on Tuesday.
Data from InvestingPro cited in the research note shows Monolithic Power has maintained strong financial health, with an overall score labeled as "GREAT" at 3.45. That assessment is supported by 30.48% revenue growth over the last twelve months.
Analyst target prices compiled by InvestingPro span a range from $920 to $1,375, with a consensus recommendation score of 1.44. The stock currently trades at a price-to-earnings ratio of 29.22. InvestingPro’s Fair Value assessment included in the dataset suggests the shares appear overvalued despite the recent run-up.
In related analyst activity, Truist Securities raised its price objective on Monolithic Power from $1,163.00 to $1,375.00 while maintaining a Buy rating. Truist highlighted the company’s strong positioning within the AI infrastructure market, particularly for high-performance power solutions deployed in data centers.
On the shareholder return front, Monolithic Power Systems declared a quarterly dividend of $1.56 per share of common stock. The dividend is scheduled to be paid on January 15, 2026, to holders of record at the close of business on December 31, 2025.
These recent updates combine analyst-led valuation adjustments, expectations for near-term operational outperformance and a cash-return action via dividend. Investors will watch the company’s upcoming earnings release and any subsequent guidance adjustments closely, given the potential for estimate revisions cited by Stifel.