Analysts See Ample Upside In Microchip Technology

Benzinga2021-10-15
  • Stifel analyst Tore Svanberginitiated coverage of Microchip Technology Inc(NASDAQ:MCHP) with a Hold rating and a $76 Price Target, implying an 6% upside.

  • With the shares up 156% from the pandemic lows, the analyst believes Microchip's "recent strong execution" is already largely priced into the stock.

  • Further, the company's "large exposure to broad-based markets and very extended lead-times" could leave it more exposed to a potentially "lead-time-driven correction in the overall analog/mixed-signal semiconductor markets," Svanberg notes.

  • Morgan Stanley maintained an Overweight and adjusted the PT to $95, implying a 33% upside.

  • UBS analyst Pradeep Ramani initiated coverage with a Neutral rating and a $154 PT, implying a 115% upside.

  • The company is a "consistent late-cycle defensive name," Ramani notes.

  • He would recommend that investors wait until later in the cycle.

  • Wells Fargo analyst Gary Mobley lowered the price target to $155 from $165, implying a 117% upside. Mobley reiterated an Equal Weight rating.

  • Price Action:MCHP shares traded higher by 1.80% at $71.51 on the last check Thursday.

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