Raymond James analyst Chris Caso initiated coverage on Microchip with an Outperform and a $95 price target saying he sees further upside from margin leverage and notes favorable end market exposure includes industrial, automotive, and non-handset consumer. The analyst also notes a cyclical downturn will reopen the door for accretive M&A opportunities.

The aviation industry's requirements for the latest, most efficient and lowest-emission aircraft is propelled by an overarching goal towards sustainability and decarbonization. To satisfy these goals, aviation power systems developers are transitioning to electric actuation systems as the trend towards More Electric Aircraft continues to grow. To provide the aviation industry with a comprehensive electric actuation solution, Microchip Technology announces a new integrated actuation power solution that combines companion gate driver boards with our expansive Hybrid Power Drive modules in silicon carbide or silicon technology with a power range of 5 kVA to 20 kVA.