Microchip price target lowered to $95 from $105 at UBS

UBS lowered the firm’s price target on Microchip to $95 from $105 and keeps a Buy rating on the shares. Guidance was down 25% for March due mostly to inventory in the distribution channel, the analyst tells investors in a research note. The firm thinks Microchip’s recovery will likely be later than peers, but the trajectory should still be very sharp as shipments to distribution are back to levels last seen before Microchip bough Microsemi. UBS sees EPS getting back to $4.50 in CY25.