Microchip Technology (MCHP): Raising PT 18% After an Impressive Quarter - Needham
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Needham & Company analyst, Rajvindra Gill, reiterated his Buy rating on shares of Microchip Technology (NASDAQ: MCHP) after the company reported excellent results from both its core business and from its Atmel acquisition. Net sales were $844.0MM, up 58% Y/Y and above the high end of their previous $799.1-841.9MM range, as well as record EPS of $0.84, up 30.2% Y/Y and 19.6% Q/Q, and above guidance of $0.70-0.79. GM came in at 55.8%. MCHP was able to bring down net leverage to 3.22x for this quarter, ahead of schedule. Previously net leverage guidance was of 3.51x at the transaction date and 3.04x by March 2017.
The price target goes to $70.00 (from $60.00) on the expectation of $4.30+ long-term earnings power and possible upside over the next several quarters as MCHP folds ATML's operations into its efficient operating model. This reflects MCHP's continued core business growth, market share gains in the MCU market, and turnaround of the Atmel business
Shares of Microchip Technology closed at $56.63 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesNeedham & Company, Earnings, Definitive Agreement
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