Citi opens ‘positive catalyst watch’ on Microchip into earnings

Citi opened a “30-day positive catalyst watch” on shares of Microchip ahead of the Q1 report. Given the 4% underperformance of the stock versus peers year-to-date, the firm expects Microchip to outperform during earnings season on negative sentiment and its expectation of positive commentary on second half of 2024 bookings. The company recently talked about seeing modest improvements in the February bookings, the analyst tells investors in a research note. With sales down 40% from its peak, the largest decline among peers, Citi expects to hear more positive commentary from Microchip. It keeps a Buy rating on the shares with a $100 price target.