Needham Believes MCHP Won’t Stop Here

By Austin Angelo

Needham analyst Rajvindra Gill reiterated a Buy rating on Microchip (NASDAQ: MCHP) today and set a price target of $100. The company’s shares closed yesterday at $73.53, close to its 52-week high of $76.50.

Gill said:

“During the past two days, we hosted a series of investor meetings in New York and Boston with Microchip’s CFO, Eric Bjornholt, and VP of Europe Finance and Investor Relations, Nawax Sharif. The company outlined multiple growth drivers including: MCU market growth/share gains (currently ~13% market share), an Analog attach strategy and the continued integration of Atmel/ open to more M&A. We are modeling non-GAAP EPS of $4.45 in 2018 and $5.00 in 2019 and a FCF margin of 30%.”

According to, Gill is a top 100 analyst with an average return of 16.7% and a 62.9% success rate. Gill covers the Technology sector, focusing on stocks such as Everspin Technologies Inc, Adesto Technologies Corp, and Silicon Laboratories.

Currently, the analyst consensus on Microchip is Strong Buy and the average price target is $85.40, representing a 16.1% upside.

In a report issued on March 1, Credit Suisse also maintained a Buy rating on the stock with a $90 price target.

Microchip’s market cap is currently $15.91B and has a P/E ratio of 197.40. The company has a book value ratio of 6.1997.

Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Mitchell Little, the VP, WW Sales and Appns. of MCHP sold 4,321 shares for a total of $318,631.

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Microchip Technology, Inc. engages in developing and manufacturing semiconductor products. It operates through the Semiconductor Products and Technology Licensing segments. The Semiconductor Products segment includes designing, developing, manufacturing, and marketing microcontrollers, development tools, and analog, interface, mixed signal, and timing products. The Technology Licensing segment offers license fees and royalties associated with technology licenses for the use of SuperFlash embedded flash and Smartbits one time programmable technologies. The company was founded on February 14, 1989 and is headquartered in Chandler, AZ.