Microchip, ON Semi, Skyworks Nab Price-Target Hikes Post-Earnings
Chipmakers Microchip Technology (MCHP), ON Semiconductor (ON) and Skyworks Solutions (SWKS) scored a raft of price-target increases to their stocks on Tuesday after posting September-quarter results late Monday.
XAutoplay: On | OffMicrochip received at least eight price-target hikes after delivering a beat-and-raise fiscal second-quarter report. Six of the Wall Street firms raising their targets have buy ratings or the equivalent on the stock, while two are neutral.
The most bullish of the bunch was Needham analyst Rajvindra Gill. He reiterated his “strong buy” rating on Microchip and increased his price target to 130 from 120.
B. Riley FBR analyst Craig Ellis also is upbeat on Microchip’s prospects. He reiterated his buy rating on the stock and raised his price target to 123 from 120.
“Bears will argue things are peaking cyclically and that sales deceleration is at hand, but we still see ample contrary evidence to support a brighter Microchip stance,” Ellis said in a report.
However, Microchip shares sank 4.1% to close at 91.44 on the stock market today.
The magnitude of Microchip’s beat-and-raise report was less than some of the more bullish expectations, Credit Suisse analyst John Pitzer said in a report. He rates Microchip stock as outperform and upped his price target to 110 from 95.
IBD’S TAKE: The IBD 50 list of top-performing growth stocks includes eight chip-industry players including Microchip and ON Semi.
ON Semiconductor received at least six price-target hikes after posting better-than-expected results for the third quarter and guiding higher for the current quarter. Of the Wall Street firms raising their price targets, three have buy ratings, two have hold ratings and the other is at underperform.
Brokerage Craig Hallum is most bullish. It raised its price target to 26 from 25 and kept its buy rating.
ON Semi shares climbed 0.9% to end the regular trading day at 21.61.
“ON reported better-than-anticipated top-line results and guidance with better gross margins the star of the show,” Susquehanna analyst Christopher Rolland said in a report. “That said, shares of ON have significantly outperformed the industry over the last quarter, creating a very high hurdle that fell slightly short of (needed) perfection.”
Rolland rates ON Semi stock as positive and upped his price target to 24 from 18.
Skyworks Solutions got at least seven price-target increases after beating Wall Street’s targets for the September quarter and giving in-line guidance for the current quarter.
B. Riley’s Ellis was most enthusiastic about Skyworks, reiterating his buy rating and raising his price target to 131 from 130.
Skyworks shares plunged 4.4% to finish at 111.19.
Skyworks’ guidance is likely conservative because of the slower-than-expected production ramp for Apple‘s (AAPL) iPhone X, Oppenheimer analyst Rick Schafer said in a report. He rates Skyworks stock as outperform with a price target of 120.