Five-star Rosenblatt analyst Hans Mosesmann reiterated his buy rating and $110 price target for Microchip on June 2, after the company positively preannounced June quarter earnings results, sending shares soaring 12 percent.
Specifically, Microchip boosted its revenue guidance to $1,287M (at the midpoint) vs. $1,247M previously, and EPS guidance to $1.44 from $1.35, citing a faster than anticipated recovery from coronavirus supply chain disruptions. Customer factories in Europe and North America are also reopening and the company is seeing fewer cancellations and pushouts than it expected.
“We continue to believe Microchip has positioned itself well for a rocky back half of the year (taken several preemptive measures) and can weather any storm with its strong pipeline of MCU/analog design wins” Mosesmann cheered. He has now ramped up his FY21 sales and non-GAAP EPS estimates to $5.04 billion and $5.60, up from $4.95 billion and $5.28, respectively.
Due to his impressive stock picking skills, Mosesmann is currently ranked #165 out of over 6,600 tracked analysts on TipRanks.