Morgan Stanley Sees 15% Upside to Microchip Technology (MCHP) Published Price Target

Morgan Stanley analyst Craig Hettenbach reiterated an Overweight rating and $159.00 price target on Microchip Technology (NASDAQ: MCHP) but sees nearly 15% upside to the published price target. This to should lead to outperformance noting that this represents more than 2X the median upside of his universe.

The analyst stated "A cyclical rebound, Microchip's lean channel inventory (30 days or more than 10% below the 10-year median), re-acceleration in data center and comm and a reversal of under-utilization charges (50 bps tailwind to GM) point to upside to estimates. We are modestly above the Street in the December quarter and more than 2% higher on sales and 3% on EPS for the March quarter. Even after recent outperformance, MCHP still trades below the trendline of peers on EV/EBITDA relative to GM."

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 $137.89 yesterday.

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