Microchip price target lowered to $58 from $71 at Morgan Stanley

Morgan Stanley analyst Joseph Moore lowered the firm’s price target on Microchip (MCHP) to $58 from $71 and keeps an Equal Weight rating on the shares ahead of the company reporting results after the market close on Thursday, February 6. The incremental deterioration seen in the last two quarters leaves the firm more worried on the longer term fundamentals, with excess inventory likely to weigh on the recovery and some risk that there have been revenue headwinds “above and beyond the cyclical,” the analyst tells investors in a preview.