Market Overview

Citi Names Microchip Technology, Texas Instruments As 'Top Picks'


Microchip Technology Inc. (NASDAQ: MCHP) and Texas Instruments Incorporated (NASDAQ: TXN) were named Top Picks by Citi on Monday.

Analysts led by Christopher Danely believed the two companies “have the best combination of capital allocation, demand, and management of businesses. Both companies are diversified so we believe demand for both is driven by the overall semiconductor market, which we are positive on.”

“Microchip is our top pick in semis as the company’s share gains, high margins, management of cash, and outstanding track record on acquisitions have resulted in superior earnings growth. Microchip's MCU share has nearly doubled over the last 10 years and its analog business has grown 41 percent since 2009, versus the 6 percent growth for the overall analog industry,” according to the note.

The firm maintained a Buy rating and $58 price target on Microchip Technology, which recently traded at $44.04, down 1.08 percent.

Danely also believed Texas Instruments’ “operational excellence combined with superior usage of cash will result in the highest earnings growth in our coverage universe. TI also has one of the highest payout ratios in semiconductors.”

The firm maintained a Buy rating and $63 price target on Texas Instruments, which recently traded at $53.17, down 0.8 percent.

Latest Ratings for MCHP

Jul 2019MaintainsOutperform
Jul 2019Initiates Coverage OnNeutral
Jun 2019Initiates Coverage OnOutperform

View More Analyst Ratings for MCHP
View the Latest Analyst Ratings

Posted-In: Christopher Danely CitiAnalyst Color Price Target Analyst Ratings


Related Articles (MCHP + TXN)

View Comments and Join the Discussion!

Latest Ratings

PNRJefferiesInitiates Coverage On
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Eil Lilly CEO Talks New Product Launches, Pricing Pressure From Other Companies

Kelley Blue Book Analyst: 'I Wouldn't Call The Chevrolet Bolt A Tesla Killer'