Microchip Technology (MCHP) PT Raised to $100 at Needham

Needham analyst Rajvindra Gill raised the price target on Microchip Technology (NASDAQ: MCHP) to $100.00 (from $90.00) while maintaining a Buy rating.

The analyst commented: "Microchip reported an inline quarter, while the guide once again came in weaker than expected. Visibility remains low near-term, due to significant reductions in lead times (currently at 8 weeks), yet management is seeing green shoots including reduced cancellations/push-outs, improving order rates, new orders aging over a shorter period and increased expedite requests. As a result, June is expected to be the bottom in revenue and sequential growth is expected into September. Further, GM is bumping along the bottom, and the trough in GM is expected to coincide with the trough in revenue. We introduce FY27 estimates and increase our PT to $100, based on 18.5x FY27 NG EPS."

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