Needham analyst Rajvindra Gill maintained a Buy rating on Microchip (NASDAQ: MCHP) today and set a price target of $120. The company’s shares opened today at $88.40.
Gill said:
“MCHP’s shares are down 10% following a $72MM miss for the Sept. quarter. MCHP is clearing through ~$100MM of excess MSCC inventory as this company was “stuffing” the channel, apparently unbeknownst to MCHP . We believe MCHP can clear out the excess inventory over the next two qrts. Concerning is the commentary around tariffs and possible impact on demand. We will need to monitor this situation, but the overall earnings of $8 in FY21 appear on track and we remain buyers on this potential earnings power.”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 20.8% and a 68.1% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Smart Global Holdings Inc, Everspin Technologies Inc, and Adesto Technologies Corp.
Microchip has an analyst consensus of Strong Buy, with a price target consensus of $116.13, representing a 31.4% upside. In a report issued on July 27, Piper Jaffray also maintained a Buy rating on the stock with a $150 price target.
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The company has a one-year high of $104.20 and a one-year low of $78.33. Currently, Microchip has an average volume of 1.97M.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MCHP in relation to earlier this year.
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Microchip Technology, Inc. engages in developing and manufacturing semiconductor products. It operates through the Semiconductor Products and Technology Licensing segments.
