In a report released today, Quinn Bolton from Needham maintained a Buy rating on Microchip (MCHP – Research Report), with a price target of $66.00.
Quinn Bolton has given his Buy rating due to a combination of factors including improvements in bookings and a stabilization of backlog, which bolster confidence in future revenue projections. The management’s commitment to maintaining ‘industry-plus’ revenue growth, despite a reduction in the long-term operating model, also played a significant role in this positive outlook.
Additionally, the announcement of further headcount reductions is expected to significantly lower operating expenses and cost of goods sold, enhancing profitability. These cost reduction measures have led to an increase in forward estimates and a raised price target, reflecting a positive assessment of Microchip’s financial trajectory.
Bolton covers the Technology sector, focusing on stocks such as Marvell, ON Semiconductor, and Allegro MicroSystems. According to TipRanks, Bolton has an average return of 13.7% and a 50.00% success rate on recommended stocks.