Jefferies Initiates Coverage On Microchip Technology With Buy Rating

According to Jefferies, Microchip Technology MCHP coverage is initiated with a Buy rating. Jefferies said that it is initiating coverage of Microchip (MCHP) with a buy rating as it views the stock as having both offensive and defensive characteristics. “Our price target of $40 is based on a P/E ratio of 17x our CY2012 EPS estimate of $2.34. A PE multiple of 17x is in below MCHP's 5-year average of 21.4x.” Microchip Technology closed yesterday at $31.97.