After Credit Suisse and Mizuho Securities gave Microchip (NASDAQ: MCHP) a Buy rating last month, the company received another Buy, this time from Needham. Analyst Rajvindra Gill maintained a Buy rating on Microchip today and set a price target of $130. The company’s shares closed yesterday at $101.41, close to its 52-week high of $101.73.
Gill wrote:
“We hosted and COO of Microchip at our 2nd New York. MCHP generates ~25% of sales from the automotive sector and is targeting automotive semiconductor growth via embedded systems which are smarter, networked, and secure. MCHP is a top ten automotive supplier with over 50 components sold into the vehicle. We would argue that MCHP is one of the leading ADAS suppliers through its broad product portfolio of MCUs, networking, analog, HMI and memory targeting important applications, such as lane departure, front collision avoidance AEB, adaptive cruise control and more.”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 22.6% and a 69.3% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.
Currently, the analyst consensus on Microchip is Strong Buy and the average price target is $113.55, representing an 12.0% upside.
In a report issued on May 30, SunTrust Robinson also maintained a Buy rating on the stock with a $117 price target.
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Microchip’s market cap is currently $23.83B and has a P/E ratio of 103.48. The company has a Price to Book ratio of 7.27.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is neutral on the stock. Most recently, in March 2018, Day L B, a Director at MCHP sold 6,000 shares for a total of $567,720.
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Microchip Technology, Inc. engages in developing and manufacturing semiconductor products. It operates through the Semiconductor Products and Technology Licensing segments.
