Jefferies Raises Price Target on Microchip Technology (MCHP) to $72 Following 2Q Beat
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Jefferies reiterated a Buy rating on Microchip Technology (NASDAQ: MCHP), and raised the price target to $72.00 (from $68.00), following the company's 2Q earnings report. On a combined basis, sales of $874m were 150bps above consensus $861m while EPS of $0.94 were 7c above. MCHP expects SepQ sales of $821-874m, $848m at the midpoint, in line with consensus. MCHP's EPS outlook of $0.85-0.95 was $0.07 above consensus at the midpoint.
Analyst Mark Lipacis commented, "MCHP's SepQ sales/EPS beat by 150bps/$0.07 with upside driven by better cost synergies from ATML. MCHP's DecQ sales outlook is inline with consensus while EPS outlook of $0.90 is 7c above. MCHP now expects $0.50 accretion from the ATML acquisition for F2017, versus $0.40 previously. We continue to like MCHP for its MCU focus, diversified markets, accretive M&A, and capital return, and think ATML cost + rev synergies will surprise investors on the upside."
Shares of Microchip Technology closed at $62.23 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesJefferies & Co, Earnings, Definitive Agreement
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