Goldman Sachs analyst Toshiya Hari has maintained their neutral stance on MCHP stock, giving a Hold rating today.
Toshiya Hari has given his Hold rating due to a combination of factors impacting Microchip Technology Inc. (MCHP). The company experienced a significant decline in its fiscal third quarter revenue, a drop of approximately 22% quarter over quarter, which was even steeper than their anticipated guidance of a 15-20% decrease. This downturn was attributed to the adjustments in procurement plans from customers and distributors, who were reacting to a weakening economic climate. The revised revenue projection was nearly a 25% decrease from the company’s peak quarter revenue earlier in the fiscal year.
Moreover, Hari maintains a Neutral stance on MCHP, considering the potential risks to the company’s pricing power and profit margins in the coming year. There is also limited room for upward movement in the stock’s price target, which has been updated to $87. Within the broader Semiconductor and Semiconductor Capital Equipment sectors, Hari and his team at Goldman Sachs prefer sub-sectors like Compute and Memory, where they see more potential for positive earnings revisions, in contrast to the Analog/Microcontroller Unit space where Microchip operates and where the near-term outlook may still be negative.
Hari covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Intel, and Microchip. According to TipRanks, Hari has an average return of 19.1% and a 66.67% success rate on recommended stocks.
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Microchip (MCHP) Company Description:
Founded in 1989, Arizona-based Microchip Technology, Inc. is a leading provider of smart, connected and secure embedded control solutions. The company’s solutions serve more than 120,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets.
Read More on MCHP:
- Microchip Technology Provides Preliminary Fiscal Third Quarter Revenue Results and Announces Earnings Release Date
- Microchip price target raised to $97 from $83 at Truist
- Microchip price target raised to $86 from $79 at Mizuho
- Microchip awarded $162M in federal incentives under CHIPS and Science Act
- Microchip Technology (NASDAQ:MCHP) Receives White House Grants Worth $162M
