Goldman Sachs Upgrades Microchip Technology (MCHP) to Neutral on Valuation

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Goldman Sachs upgraded Microchip Technology (NASDAQ: MCHP) from Sell to Neutral with a price target of $29.00 on valuation.

The firm comments, "We upgrade Microchip to Neutral from Sell. Recall we were Sell-rated as we believed MCHP traded at an unwarranted premium to the group. We believe valuation is now reasonable as Microchip’s multiple has compressed through the year: MCHP now trades at 18X our CY13 EPS vs. peers at 17X vs. a 35% premium on CY12 EPS at the time of our downgrade. We believe this multiple compression has been driven by investors rotating into names with better valuation/return profiles."

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 $31.70 yesterday, with a 52 week range of $28.92-$38.88.

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