Microchip price target raised to $110 from $82 at Needham

Needham analyst Rajvindra Gill raised the firm’s price target on Microchip to $110 from $82 and keeps a Buy rating on the shares after its Q3 earnings beat and above-consensus guidance for Q4. All of the company’s metrics were slightly above expectations, and more importantly, Microchip is confident that its its Q1 performance will increase sequentially, the analyst tells investors in a research note. The firm adds that while backlogs, lead times and orders have begun to crack, the company’s gross margin remains close to record levels.