Truist Securities has revised its price target for Microchip Technology (MCHP, Financial), reducing it from $56 to $43, while maintaining a Hold rating on the stock. This adjustment follows Microchip's recent issuance of $1.485 billion in convertible preferred stock.
The proceeds from the issuance are intended to reduce the company's commercial paper liabilities. According to Truist's analysis, this financial maneuver is expected to influence Microchip's leverage position, projecting a peak leverage of six times on a gross basis by September 2025.
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 $61.62 with a high estimate of $75.00 and a low estimate of $35.00. The average target implies an upside of 59.79% from the current price of $38.56. 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 $47.54, suggesting a upside of 23.29% from the current price of $38.56. 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.
