Citadel Securities Maintains a 'Reduce' on Microchip Technology (MCHP); Decision to Maintain Elevated Production Levels Adds Significant Risk
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Price: $79.66 +0.62%
Rating Summary:
26 Buy, 11 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
Rating Summary:
26 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 18 | New: 20
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Citadel Securities maintains a 'Reduce' on Microchip Technology (NASDAQ: MCHP) price target of $28.00.
Citadel analyst says, "Post Microchip's pre-announcement, we are modeling in-line sales of $374.5M and recurring EPS of $0.50. Our CY3Q revenue estimate calls for sales of $360MM (-4%), which is consistent with preliminary guidance calling for a low to mid single digit decline. Given increasing evidence of continuing macroeconomic weakness, we think the risk is that CY3Q ultimately shapes up to be even softer. Additionally, from a GM perspective we remain concerned about MCHP's decision to keep production levels high (and continue to grow already elevated inventory) in the face of uncertain demand and declining revenue."
For more ratings news on Microchip Technology click here and for the rating history of Microchip Technology click here.
Shares of Microchip Technology closed at $34.24 yesterday.
Citadel analyst says, "Post Microchip's pre-announcement, we are modeling in-line sales of $374.5M and recurring EPS of $0.50. Our CY3Q revenue estimate calls for sales of $360MM (-4%), which is consistent with preliminary guidance calling for a low to mid single digit decline. Given increasing evidence of continuing macroeconomic weakness, we think the risk is that CY3Q ultimately shapes up to be even softer. Additionally, from a GM perspective we remain concerned about MCHP's decision to keep production levels high (and continue to grow already elevated inventory) in the face of uncertain demand and declining revenue."
For more ratings news on Microchip Technology click here and for the rating history of Microchip Technology click here.
Shares of Microchip Technology closed at $34.24 yesterday.
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