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UPDATE: Stifel Upgrades Microchip Technology (MCHP) to Buy, Nearing Trough Multiple

June 28, 2022 5:32 AM EDT
Get Alerts MCHP Hot Sheet
Price: $63.66 --0%

Rating Summary:
    21 Buy, 10 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 6 | Down: 7 | New: 23
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(Updated - June 28, 2022 8:28 AM EDT)

Stifel analyst Tore Svanberg upgraded Microchip Technology (NASDAQ: MCHP) from Hold to Buy with a price target of $75.00 (from $70.00).

The analyst commented, "MCHP’s stock is down -31% as of 6/27/22 relative to its peak on 1/4/22 (vs. down -45% in 2020). On a relative basis, this compares to the -24% average decline from our large cap peer group including TXN, NXPI, ADI, ON, and MCHP (vs. -39% in 2020). Interestingly, when compared to the 2008 crisis, while MCHP remains a more defensive name having proved more resilient at -54% returns (vs. -60% large-cap returns on average), it appears that now MCHP is relatively underperforming in the current environment."

"As of 6/27/22, MCHP is trading at a 9.8x P/E on CY23 NG EPS (vs. 8.4x in 2020). This valuation multiple is nearing the lowest MCHP has traded in the past five years, with the lowest P/E multiple of 8.1x on 10/26/18. On average, MCHP traded at ~15.0x P/E over the past five years (from 2017 to 2022)."

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 $60.67 yesterday.


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