Stifel analyst Tore Svanberg has revised the price target for Microchip Technology Inc. (MCHP, Financial), reducing it from $80 to $60 while maintaining a Buy rating on the stock. This adjustment comes as the firm anticipates that the upcoming earnings for the Analog, Connectivity, and Processors sector will generally meet expectations for the March quarter, but will present a weaker outlook for June.
The decision to lower the price target is influenced by potential tariff impacts, which are expected to leave significant marks on the industry. Despite uncertainty around the scope and longevity of these tariffs, the analyst indicated that there is a growing risk of the broader semiconductor market entering a cyclical downturn.
As the industry braces for potential headwinds, Svanberg's insights suggest caution moving forward, even as expectations remain positive for Microchip's near-term performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Microchip Technology Inc (MCHP, Financial) is $62.23 with a high estimate of $75.00 and a low estimate of $35.00. The average target implies an upside of 63.99% from the current price of $37.95. More detailed estimate data can be found on the Microchip Technology Inc (MCHP) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Microchip Technology Inc's (MCHP, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Microchip Technology Inc (MCHP, Financial) in one year is $47.63, suggesting a upside of 25.51% from the current price of $37.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Microchip Technology Inc (MCHP) Summary page.
