Microchip cyclical bottom may be forming, says JPMorgan

JPMorgan keeps an Overweight rating on Microchip (MCHP) with a $70 price target following the company’s business update call. The firm believes Microchip outlined a “credible set of initiatives” that should position it for growth, profitability, and competitiveness, potentially driving a minimum of $3.00 earnings per share in through-cycle earnings power. The company’s near-term fundamentals are tracking to expectations, the analyst tells investors in a research note. JPMorgan believes cyclical indicators suggest a bottom may be forming for Microchip.