Morgan Stanley Sees Microchip Technology As Fairly Valued
In a report published Wednesday, Morgan Stanley analyst Craig Hettenbach reiterated an Equal-Weight rating on Microchip Technology (NASDAQ: MCHP).
In the report, Morgan Stanley noted, “Upside in the quarter was driven by growth in MCUs, while analog cooled a bit following a strong Q4. Excluding contribution from the Supertex acquisition, sales were guided roughly 1% below the Street. EPS guidance of $0.66 is in line, but includes $0.01 in accretion from Supertex. In MCUs, we see significantly greater operating leverage at Atmel to the gradually improving semi-cycle (19 points below peak OM vs. 3.5 points for Microchip), as well as optionality around M&A value and buybacks.”
Microchip Technology closed on Tuesday at $46.35.
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