Citi analyst Christopher Danely says Microchip (MCHP) last night lowered guidance for the December quarter from a 6%-12% quarter-over-quarter revenue decline to a 12% decline due to lower turns business. The company also announced the closure of its wafer fab in Tempe, Arizona, which should result in annual cost savings of $90M by mid-2026, the analyst tells investors in a research note. Citi believes the guidance cut is the “right move” and remains confident in Microchip’s sales bouncing back faster than peers. It reiterates a Buy rating on the shares with an $82 price target
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on MCHP:
- Microchip lowers Q3 revenue view to lower end of $1.03B-$1.1B range
- Microchip call volume above normal and directionally bullish
- Biden adding more China chip curbs, NY Times reports
- Biden admin debates on additional China chip curbs, Bloomberg says
- Analog Devices price target raised to $250 from $245 at BofA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
