In the latest quarter, 16 analysts provided ratings for Microchip Technology MCHP, showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 10 | 2 | 4 | 0 | 0 |
| Last 30D | 0 | 0 | 2 | 0 | 0 |
| 1M Ago | 3 | 2 | 0 | 0 | 0 |
| 2M Ago | 5 | 0 | 2 | 0 | 0 |
| 3M Ago | 2 | 0 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $62.62, a high estimate of $83.00, and a low estimate of $43.00. Marking an increase of 3.45%, the current average surpasses the previous average price target of $60.53.
Exploring Analyst Ratings: An In-Depth Overview
A clear picture of Microchip Technology's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| William Stein | Truist Securities | Raises | Hold | $64.00 | $52.00 |
| Matthew Prisco | Cantor Fitzgerald | Announces | Neutral | $70.00 | - |
| Mark Lipacis | Evercore ISI Group | Raises | Outperform | $83.00 | $69.00 |
| Vijay Rakesh | Mizuho | Raises | Outperform | $78.00 | $68.00 |
| Christopher Danely | Citigroup | Raises | Buy | $68.00 | $55.00 |
| Pradeep Ramani | UBS | Raises | Buy | $65.00 | $60.00 |
| Kevin Cassidy | Rosenblatt | Raises | Buy | $70.00 | $63.00 |
| Pradeep Ramani | UBS | Raises | Buy | $60.00 | $55.00 |
| Melissa Fairbanks | Raymond James | Raises | Strong Buy | $65.00 | $60.00 |
| Joseph Moore | Morgan Stanley | Raises | Equal-Weight | $50.00 | $39.00 |
| Christopher Danely | Citigroup | Raises | Buy | $55.00 | $50.00 |
| Quinn Bolton | Needham | Maintains | Buy | $66.00 | $66.00 |
| Pradeep Ramani | UBS | Lowers | Buy | $55.00 | $70.00 |
| William Stein | Truist Securities | Lowers | Hold | $43.00 | $56.00 |
| Tore Svanberg | Stifel | Lowers | Buy | $60.00 | $80.00 |
| Christopher Danely | Citigroup | Lowers | Buy | $50.00 | $65.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Microchip Technology. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Microchip Technology compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Microchip Technology's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Microchip Technology's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Microchip Technology analyst ratings.
All You Need to Know About Microchip Technology
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
Financial Milestones: Microchip Technology's Journey
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining Microchip Technology's financials over 3M reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -26.8% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Microchip Technology's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -16.16%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Microchip Technology's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -2.39%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.01%, the company may need to address challenges in generating satisfactory returns from its assets.
Debt Management: With a high debt-to-equity ratio of 0.8, Microchip Technology faces challenges in effectively managing its debt levels, indicating potential financial strain.
What Are Analyst Ratings?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
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