UPDATE: Stifel Nicolaus Raises Target to $42 on Microchip Technology

Stifel Nicolaus reiterates its Buy rating on Microchip Technology

and raises its price target to $42 from $41 a share as it appears the December quarter marked a trough to current downturn in the company's revenues. Stifel Nicolaus says, "Management believes the company is seeing an upturn earlier than its peers due to its broad consumer exposure, 4 week lead-times and sell-out method of recognizing channel revenue. We also believe Microchip may be gaining incremental market share and dollar content increases in markets such as automotive." MCHP closed at $37.69 a share on Thursday.