UPDATE: Citi Lowering Price Target On Microchip Technology

Citi Investment Research is out with a research report on Microchip Technology MCHP and is lowering its price target to $32 from $36 after earnings. It has a Hold rating on shares. In a note to clients, Citi Investment Research writes, "MCHP stayed flat after market because Jun-Q results and Sep-Q outlook were consistent with its pre-announcement on 7/11. While MCHP reiterated broad-based weakness due to global macro condition, analog earnings so far confirmed our view that: 1) MCHP's weakness was partly company specific due to its >50% Cons/PC exposure (same reason for SLAB) and booking deterioration past 3 Q's, and 2) companies with large leverage to smartphone/networking (#1 AVGO and #MXIM) should see relatively less negative revisions (Fig 1)." Shares of MCHP lost $1.31 yesterday to close at $31.77, a loss of 3.96%.