UPDATE: Stifel Nicolaus Reiterates Buy Rating, Raises PT on Microchip Technology Following Increased June Quarter Guidance

In a report published Tuesday, Stifel Nicolaus analyst Kevin Cassidy reiterated a Buy rating on

, and raised the price target from $48.00 to $50.00. In the report, Stifel Nicolaus noted, “With a surprise announcement after the market close on Monday, June 3, Microchip management increased its June quarter guidance. Referencing very strong bookings and excellent visibility from its customers, management expects its inventory correction to be completed at the end of June, and manufacturing employees will return to full time shifts immediately as production ramps to meet the increasing demand. We continue recommending the MCHP shares for the company's ability to recover from semiconductor cycles faster than its peers. Also, we view Microchip's announcement as positive for the broad-based industrial semiconductor players. We maintain our Buy rating.” Microchip Technology closed on Monday at $36.84.