Jefferies Reiterates a 'Buy' on Microchip Technology (MCHP); 2nd Confession's a Charm

Jefferies reiterates a 'Buy' on Microchip Technology (NASDAQ: MCHP) price target of $38.00.

Jefferies analyst says, "MCHP negatively pre-announced its SepQ earnings citing weaker than expected net sales in latter part of quarter. This is MCHP's 2nd negative announcement on its earnings this cycle, and we observe that two mid-large cap semi stocks (Fairchild (NYSE: FCS), TI (NYSE: TXN)) that have announced downward revisions twice this cycle have outperformed materially since their 2nd confession. We like MCHP's 16- and 32-bit product cycles and its 4% div yield." (Jefferies lowers FY12 EPS estimate from $2.07 to $1.88 and FY13 from $2.10 to $1.94)

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 $35.31 yesterday.

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