JP Morgan Maintains Neutral Rating and Establishes $29 PT on Microchip Technology

A report from J.P. Morgan reiterates its Neutral Rating and establishes its $29 price target on Microchip Technology MCHP. The report states, “MCHP is trading at 20X our C12 EPS estimate. However, we believe the stock is fairly valued at a 16X multiple, a slight premium to the average large cap semiconductor average of 15X. As a result, we are establishing our December 2012 price target $29.00 or 16X our new C12 EPS estimate. Due to rich valuation, we remain Neutral”. MCHP closed yesterday at $35.31.