Microchip price target raised to $90 from $85 at Needham

Needham raised the firm’s price target on Microchip to $90 from $85 and keeps a Buy rating on the shares. The company’s Q3 results were inline with its recent preannouncement but its Q4 outlook was well below estimates amid low visibility, with lead times at under 8 weeks and customers still meaningfully rescheduling backlog, the analyst tells investors in a research note. With a 42% peak-to-trough revenue decline implied by March guidance however, Needham is “hopeful that revenue stabilizes in June” before beginning a modest recovery in the second half of the year, the firm added.