Jefferies Raises Price Target on Microchip Technology (MCHP) Following 4Q Beat

Jefferies reiterated a Buy rating on Microchip Technology (NASDAQ: MCHP), and raised the price target to $56.00 (from $53.00), following the company's 4Q earnings report. MCHP reported sales of $568m, 100bps above consensus' $563m. EPS of $0.70 was 2c above consensus. MCHP expects JunQ sales of $799.1-841.9m, $821m at the midpoint, 180bps below consensus on a combined basis. MCHP's combined EPS outlook of $0.70-0.79 was $0.04 below consensus at the midpoint.

Analyst Mark Lipacis commented, "MarQ sales/EPS $568m/$0.70 were above consensus $563m/$0.68. MCHP's core business performed well in the quarter and performed in-line with our expectations. JunQ sales outlook missed consensus by 180bps due to weaker than expected contribution from ATML. MCHP remains a top pick due to our forecast for its FCF/Share growth potential, accretive M&A and capital return. Reiterate Buy."

For an analyst ratings summary and ratings history on Microchip Technology click here. For more ratings news on Microchip Technology click here.

Shares of Microchip Technology closed at $48.42 yesterday.

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