Needham & Company Raises Price Target on Microchip Technology (MCHP) to $75
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Needham & Company reiterated a Buy rating on Microchip Technology (NASDAQ: MCHP), and raised the price target to $75.00 (from $70.00), following the company's 2Q earnings report. Revenue was $873.8MM, above consensus estimate of $861.1MM and the high end of the company’s guidance of $852.4-869.3MM. EPS came in at $0.94, compared to $0.87 estimates. MCHP is forecasting $0.85-0.95 EPS for 3Q17, which includes $0.13-0.17 EPS from Atmel.
Analyst Rajvindra Gill commented, "MCHP delivered across the board – both in its core business and Atmel business. Revenue was $873.8MM, up 56.2% Y/Y and above consensus estimate of $861.1MM as well as the high end of the company’s guidance of $852.4-869.3MM. Gross margins were also above company guidance at 57.2% in 2Q17 and beat consensus estimate of 55.8%. EPS came in at $0.94, compared to our $0.87 estimate. The Atmel acquisition contributed $0.14 to EPS for the quarter, which was above management’s previous guidance of $0.09-0.11. Not only did MCHP raise 3Q17 guidance, but it also is increasing its accretion target from Atmel to $0.50, $0.70, and $0.90 for FY17, FY18, and FY19, respectively. With the impressive results across both core and Atmel business lines, higher guidance, and increased accretion targets, we are raising our PT to $75."
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 EntitiesNeedham & Company, Earnings, Definitive Agreement
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