Microchip downgraded to Underperform from Neutral at BofA

BofA downgraded Microchip (MCHP) to Underperform from Neutral with a price target of $65, down from $80, citing the company’s “second earnings miss within a month,” CEO transition, high inventory, closure of the Arizona fab and return of CHIPS Act funds. These all suggest a “lack of any meaningful demand recovery” in the near-term, the analyst tells investors.