Key Highlights:
- Microchip Technology's stock dips 1.4% following Morgan Stanley's revenue growth concerns.
- The average analyst price target suggests a potential upside of nearly 60% from current levels.
- GuruFocus estimates indicate a 23.29% potential upside based on the GF Value.
Microchip Technology Inc. (MCHP, Financial) recently experienced a 1.4% decline in premarket trading. This drop followed Morgan Stanley's concerns regarding the company's revenue growth prospects, despite CEO Steve Sanghi's new restructuring initiative. While maintaining an Equal-Weight rating, Morgan Stanley reduced its price target to $39, citing rising competition and broader macroeconomic challenges.
Wall Street Analysts' Forecast
For the upcoming year, 21 analysts have offered price targets for Microchip Technology Inc. (MCHP, Financial), averaging at $61.62. The high estimate reaches $75.00, while the low is set at $35.00, suggesting a potential upside of 59.79% from its current price of $38.56. Investors seeking more detailed forecast data can explore the Microchip Technology Inc (MCHP) Forecast page.
From a broader perspective, 24 brokerage firms provide an average recommendation of 2.1 for Microchip Technology Inc. (MCHP, Financial), signifying an "Outperform" status. This recommendation is derived from a scale of 1 to 5, where 1 indicates a Strong Buy, and 5 suggests a Sell.
According to GuruFocus estimates, the projected GF Value for Microchip Technology Inc. (MCHP, Financial) in one year stands at $47.54, representing a potential upside of 23.29% from the current price of $38.56. The GF Value is an estimate of the stock's fair trading value, calculated based on historical trading multiples, past business growth, and future performance projections. For more comprehensive data, visit the Microchip Technology Inc (MCHP) Summary page.
