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Fly News Breaks for January 7, 2020
MCHP
Jan 7, 2020 | 07:08 EDT
SunTrust analyst William Stein raised his price target for Microchip to $119 from $113 following the company's positive preannouncement on Monday, saying details are better than headlines suggest. Notably, Stein, who made no change to his Buy rating, says Microchip is preparing its factories and subcontractors to be able to deliver "better than mid-single digit percentage sequential revenue growth" in Q1, which is noteworthy because he estimates normal seasonality in Q1 is down ~50bps. While a recovery now appears clearly at hand, Stein says what could make the recovery look even better is more detail about channel inventory conditions.