Microchip rallies after upbeat guidance, Wall Street upgrades

Microchip Technology's MCHP.O shares up 12.6% at $55.35 early Fri after upbeat current-qtr guidance

MCHP jumps as much as 18.2% to $58.06, a two-mth high

Chandler, Arizona-based chipmaker late Thurs forecast fiscal Q1 earnings and rev above Wall Street's expectations, signaling recovery in demand

It expects Q1 adj EPS of 18-26 cents, well above analysts' estimate of 16 cents, and sees net sales of $1.02-$1.07 mln vs estimate of $987.6 mln

BofA Global Research raises rating to 'neutral' from 'underperform' and hikes PT to $56 from $44

Upgrade given signs of a potential cyclical upturn while CEO Steve Sanghi's turnaround efforts accelerate EPS leverage - BofA

At least four other brokerages boost their PTs, including Morgan Stanley to $50 from $39 and Stifel to $70 from $60

With move on the session, MCHP down ~3% YTD vs 10% decline in Philadelphia Semiconductor Index .SOX and 8% drop in S&P 500 Tech sector .SPLRCT

Stock about 45% below its 52-week intraday high of $100.57 hit on May 24, 2024