Microchip Technology Fairly Valued At Current Levels, Citigroup Reports

Microchip Technology (NASDAQ: MCHP) is a stable high-quality stock that mixes offensive and defensive attributes, Citigroup reports.

“We rate MCHP Hold/Medium Risk because the stock appears fairly valued at current levels,” Citigroup writes. “MCHP trades at 3.4x EV/S and 14.9x P/E 2011, above the group's 2.4x EV/S and 14.2x P/E. However, we are encouraged by recent progress with the SST acquisition and would look to get more constructive if we gain better clarity on L/T growth prospects and SST synergies.”

Microchip Technology currently trades at $33.24.