Credit Suisse Takes a Victory Lap After Microchip Technology (MCHP) Guided Well Above Expectations

Credit Suisse analyst John Pitzer reiterated an Outperform rating and $200.00 price target on Microchip Technology (NASDAQ: MCHP) reminding investors that he flagged the company as his top pick for earnings. Now, with the company having reported EPS of $1.98, ahead of the $1.91 consensus and guiding to $2.11, above the $1.99.

The analyst stated "MCHP continues to support our view that the cyclical recovery is stronger and more sustainable than most expect, helped by 2 years of inventory depletion culminating in COVID panic depletion as well as significant supply rationalization over the 10+ years with over 250 M&As in the sector. While the cycle will end at some point – investors have been overly pessimistic – and Stronger-for-Longer (Keep Calm and Semi On) is still intact. Thru Jun Semi units are still ~1-2% BELOW long-term trend growth of 8.5% - supporting a cycle thru at least 1HCY22."

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 $146.82 yesterday.

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