Microchip price target lowered to $100 from $105 at BofA

BofA lowered the firm’s price target on Microchip to $100 from $105 and keeps a Buy rating on the shares. Fiscal Q3 results were inline with the prior warning, but the Q1 sales outlook of $1.325B, down 25% quarter-over-quarter and 41% year-over-year, was “materially below” the $1.67B consensus forecast, the analyst tells investors. Microchip plans to cut salaries by 10-20% and take 2-week each shutdowns in fabs in the March and June quarters, notes the analyst, who says the last time the company took similar “extreme actions” was during April 2020 and in 2009, both of which “in hindsight marked a cyclical trough.”