UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Microchip Technology Following Results Preannouncement

In a report published Tuesday, Goldman Sachs analyst James Schneider reiterated a Neutral rating on

, and raised the price target from $37.00 to $38.00. In the report, Goldman Sachs noted, “Microchip positively preannounced results on June 3rd. The company now expects sales to be up 4% to 7% qoq, or $454 mn at the midpoint, vs. prior guidance of up 2% to 6%, the Street at $448 mn and GS at $450 mn. EPS (ex. ESOs) is expected to be $0.54 vs. $0.52 prior. Microchip attributed the upside to a very strong bookings environment, and noted improved customer visibility. This commentary is consistent with recent reports from peers such as Avago and Semtech, and above-seasonal April SIA data.” Microchip Technology closed on Monday at $36.84.