Microchip Technology (NASDAQ:MCHP) PT Boosted on Macroeconomic Outlook

With the macroeconomic outlook for automotive and consumer trending higher, Microchip Technology (NASDAQ:MCHP) had its price target raised by UBS (NYSE:UBS), as those segments drive 50 percent of Microchip's business.

UBS says, "Microchip’s F3Q11 results (27-Jan), we expect sales/non-GAAP EPS of $365.1m/$0.57, in line with consensus. On 30-Nov, Microchip narrowed its F3Q sales guidance down 3-7% q/q from down 2-8%, keeping the mid-point at -5%. On a macroeconomic outlook that supports improving trends in consumer and automotive, which drive half of Microchip’s sales, as well as proven value created from the acquisition of SSTI, which we believe was very well integrated, we raise our price target to $41.00."

UBS maintains a "Buy" rating on Microchip Technology (MCHP), which closed Wednesday at $36.90, losing $0.57, or 1.52 percent. UBS raised their price target on Microchip from $36.50 to $41.