SoFi stock falls after announcing $1.5B public offering of common stock
Investing.com - Truist Securities has reiterated its Hold rating and $60.00 price target on Microchip Technology (NASDAQ:MCHP) following the company’s positive fourth-quarter preliminary results. The target represents a potential 5.8% upside from the current price of $56.71, though InvestingPro data suggests the stock is slightly overvalued based on its Fair Value assessment.
The semiconductor company raised its fourth-quarter sales and earnings per share guidance modestly, citing stronger than expected bookings and growing backlog for the quarter. Microchip Technology typically provides such updates ahead of the December conference season. This positive guidance aligns with InvestingPro data showing net income is expected to grow this year, despite the company posting a loss of $0.45 per share over the last twelve months.
Truist Securities described the update as "constructive" for both Microchip Technology and its industry peers. Despite the positive development, the firm maintained its cautious stance on diversified semiconductor companies. This caution may be warranted considering Microchip’s revenue declined 23.36% over the last twelve months.
The research firm explained that conditions typically required for outperformance in the sector—both troughing fundamentals and troughing valuation—are not currently present for most companies in this category.
Truist’s $60 price target for Microchip Technology is based on applying what it calls a "through-cycle valuation" of 17 times its recovery earnings per share estimate of $3.55, which the firm notes is "well above near-term estimates."
In other recent news, Microchip Technology has announced a revision in its financial outlook for the third quarter of fiscal 2026, now anticipating net sales of approximately $1.149 billion, marking a 12% year-over-year increase. This adjustment places the company at the high end of its previous guidance, largely due to stronger-than-expected booking activity. KeyBanc reaffirmed its Overweight rating on Microchip Technology, maintaining a price target of $85.00, following the company’s positive pre-announcement. Stifel also reiterated its Buy rating with a price target of $75.00, citing positive management commentary on business performance. Additionally, Microchip introduced two new low-power digital power monitors, the PAC1711 and PAC1811, designed to enhance energy monitoring in battery-operated devices. These monitors feature real-time system alerts and a unique step-alert function for detecting power variations. These developments highlight Microchip’s strategic focus on innovation and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.