🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Microchip Technology, NXP Semiconductors upgraded to buy at Mizuho

Published 05/24/2024, 07:24 PM
© Reuters.
MCHP
-
NXPI
-

Analysts at Mizuho lifted Microchip Technology (NASDAQ:MCHP) and NXP Semiconductors (NASDAQ:NXPI) to Buy from Neutral in a note Friday, based on improving fundamentals through the second half of 2024.

Mizuho believes that after two to three years of underperformance, the Analog group now has baked in the 2023-24E slowdown and could start catching up with the SOX, in particular as "inventories peak and utilization gets cut across the supply chain despite the overhang of increasing fab capacity and supply."

The investment firm raised its target for NXPI to $325 from $265 per share. They are more bullish on the company as they believe it has navigated the recent downturn well.

In addition, it "is poised to see strong growth as inventory levels return to normalized levels," said analysts.

Meanwhile, the MCHP price target was lifted to $115 from $85 per share, representing 25.6 times Mizuho's F26E EPS forecast for the company. Mizuho feels MCHP is poised to rebound following multiple quarters of below the market average topline weakness.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.