On Nov 07, major Wall Street analysts update their ratings for $Microchip Technology (MCHP.US)$, with price targets ranging from $90 to $95.
J.P. Morgan analyst Harlan Sur maintains with a buy rating, and adjusts the target price from $100 to $90.
BofA Securities analyst Vivek Arya maintains with a hold rating.
Jefferies analyst Blayne Curtis maintains with a buy rating, and adjusts the target price from $115 to $90.
Evercore analyst Mark Lipacis maintains with a buy rating, and adjusts the target price from $101 to $95.
Stifel analyst Tore Svanberg maintains with a buy rating, and adjusts the target price from $98 to $90.
Furthermore, according to the comprehensive report, the opinions of $Microchip Technology (MCHP.US)$'s main analysts recently are as follows:
Microchip's recent performance was deemed satisfactory, however, their forward guidance fell short of the general market consensus, influenced by persistent softness in the auto and industrial sectors. It's assessed that the company's shipments are trailing behind demand, suggesting the potential for a robust recovery in fundamental performance.
Microchip's shares experienced a 5% decline in aftermarket trading following the company's forecast for the December quarter, which fell short of the consensus by a significant margin both in terms of revenues and EPS. Despite this underperformance, analysts suggest that purchasing the company's shares could be advantageous, given that Microchip's shipping rates are reported to be 46% below consumption levels. This discrepancy is seen as of the end of September, and as a result, visibility into the company's operations is perceived to be at unprecedentedly low levels. Nevertheless, the company's management is believed to have offered conservative guidance and remarks, which analysts interpret as setting the stage for potential positive surprises through the year 2025.
The adjustment in the cycle is expected to extend longer due to continued inventory reductions and macroeconomic uncertainties. It is anticipated that there will be a business recovery sometime in the following year.
The firm indicated that Microchip's recent performance fell short on sales and gross margin guidance due to persistent weakness in end markets, which continues to prolong the inventory digestion period.
Here are the latest investment ratings and price targets for $Microchip Technology (MCHP.US)$ from 7 analysts:
Note:
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