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Investing.com - Cantor Fitzgerald has reiterated its Neutral rating on Microchip Technology (NASDAQ:MCHP) with a price target of $70.00, according to a research note published Monday. The target sits within the broader analyst range of $60-90, with InvestingPro data showing the stock currently trades above its Fair Value. The company has maintained dividend payments for 24 consecutive years, with a current yield of 2.63%.
Analyst Matthew Prisco maintained the rating while identifying Microchip as one of the firm’s preferred names in the Analog semiconductor space, alongside Analog Devices and NXP Semiconductors.
The firm highlighted Microchip’s advantages including "best GM leverage, Industrial overexposure, preannouncement propensity" as key factors supporting its position among favored analog semiconductor companies.
Cantor Fitzgerald noted that Microchip will be "very active in conferences over the coming weeks" and indicated it "would not be surprised to see a modest positive pre at some point" from the company.
The research firm expressed more caution on ON Semiconductor, describing it as having "more balanced risk/reward," while indicating interest in Texas Instruments once its "CY27 inflection comes into greater focus."
In other recent news, Microchip Technology reported its first-quarter fiscal year 2026 earnings, surpassing expectations with an earnings per share (EPS) of $0.27, compared to the forecast of $0.24. The company also reported revenue of $1.08 billion, exceeding the anticipated $1.05 billion. Despite these positive earnings results, several firms adjusted their price targets for Microchip Technology. Susquehanna lowered its price target to $85 from $90, maintaining a Positive rating due to macroeconomic uncertainties. TD Cowen reduced its price target to $60 from $75, citing the company’s financial results that, while a beat, did not meet some investors’ hopes for a stronger recovery. In contrast, Needham raised its price target to $77 from $66, maintaining a Buy rating and highlighting improving demand in the semiconductor sector. Morgan Stanley also adjusted its price target upward to $63 from $61, noting the company’s strong quarter-over-quarter revenue growth. These developments reflect a mixed analyst sentiment following Microchip’s recent financial performance.
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