Microchip Technology Stock Rating Upgraded by Goldman Sachs Group Inc. (MCHP)
Microchip Technology (NASDAQ:MCHP) was upgraded by research analysts at Goldman Sachs Group Inc. from a “neutral” rating to a “buy” rating in a report released on Tuesday, TheFlyOnTheWall.com reports. The firm currently has a $46.00 target price on the stock, up from their previous target price of $42.00. Goldman Sachs Group Inc.’s price target indicates a potential upside of 14.06% from the stock’s previous close.
The analysts wrote, “We are upgrading Microchip to Buy as we believe the Street is under-modeling out-year estimates by as much as 15%: (1) Microchip has the largest exposure to construction (res and non-res) in the group, and leading indicators such as the ABI suggest sales into this vertical are moving higher; (2) the stock meaningfully outperforms in the mid-to-late stages of the semi cycle due to exposure to distributors (50% of sales) and late-cycle verticals; (3) SMSC is set to drive $0.50 of accretion in CY2014E; (4) We think worries of MCU share loss to ARM solutions are overdone, with ARM having taken share mostly in smartcards and areas where Microchip does not participate.”
Shares of Microchip Technology (NASDAQ:MCHP) traded up 0.57% on Tuesday, hitting $40.56. The stock had a trading volume of 277,329 shares. Microchip Technology has a 52-week low of $28.92 and a 52-week high of $41.78. The stock’s 50-day moving average is $39.75 and its 200-day moving average is $37.7. The company has a market cap of $8.003 billion and a P/E ratio of 66.22.
Microchip Technology (NASDAQ:MCHP) last issued its quarterly earnings data on Wednesday, July 31st. The company reported $0.57 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.54 by $0.03. The company had revenue of $462.80 million for the quarter, compared to the consensus estimate of $454.67 million. During the same quarter in the prior year, the company posted $0.48 earnings per share. The company’s quarterly revenue was up 31.5% on a year-over-year basis. Analysts expect that Microchip Technology will post $2.37 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Thomson Reuters/Verus upgraded shares of Microchip Technology (NASDAQ:MCHP) from a “hold” rating to a “buy” rating in a research note to investors on Monday, August 19th. Separately, analysts at Morgan Stanley initiated coverage on shares of Microchip Technology (NASDAQ:MCHP) in a research note to investors on Friday, August 16th. They set an “equal weight” rating on the stock.
Seven investment analysts have rated the stock with a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. Microchip Technology currently has an average rating of “Buy” and a consensus price target of $40.41.
Microchip Technology Incorporated develops and manufactures specialized semiconductor products used by its customers for a range of embedded control applications.
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