TSP Weekly Tech Stock Update—April 12, 2025

This Week: AAPL gets a reprieve, AVGO boosts buyback, Onsemi covets Allegro, TTAN had a good week, Rubrik's Annapurna, Macquarie upgrades TEAM, Raymond James likes CFLT, positive ZS/CRWD checks & more

Hello from Rob…

—In early March, chipmaker Onsemi (ON, $35.08) disclosed that it had made a second takeover offer for Allegro MicroSystems (ALGM, $22.23), a leading provider of magnetic sensing and power ICs for the automotive and industrial end-markets. Onsemi argues that the two companies are a natural strategic fit.

The proposed buyout of $35.10 a share in cash—up from the the previous offer of $34.50 a share submitted in September—is valued at $6.9 billion.

While Onsemi’s latest offer was quickly rejected by Allegro’s board as “inadequate,” Allegro shares on Tuesday hit a new 52-week low of $18.34 before rebounding later in the week. The stock is down sharply from its record high of $53.05 reached in July 2023.

—On Monday, shares of ServiceTitan (TTAN, $100.89) traded down to $80.23, holding above the post-IPO low of $79.81 from the middle of March, before rebounding. For the week, ServiceTitan shares jumped 18.6%.

Needham reiterated its ServiceTitan price target of $125, saying the company—a provider of a cloud-based platform for the residential/commercial building trades—should be relatively recession-resistance.

Expansion into new categories, such as roofing and commercial, and solid Pro module adoption are capable of driving net revenue retention, according to the firm.

For more on ServiceTitan, see my write-up from last month.

*Inside This Issue: Cybersecurity Remains A CIO Top Priority

—Paid subscribers will receive the May 2025 PDF of Tech-Stock Prospector (TSP #279) via email on Tuesday, May 13.

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