Microchip Tech falls after downbeat Q3 net sales forecast

Shares of chipmaker Microchip Technology MCHP.O fall 2.9% to $57.65 premarket, ranking among S&P 500's .SPX worst performers on Friday

MCHP forecasts lower Q3 net sales than Wall Street expectations, according to data compiled by LSEG

Demand for the co's chips weakens as automotive and industrial markets continue to clear excess inventory

At least six brokerages cut price target for the stock

Jefferies says that they see analog semiconductor stocks trading sideways until end-markets improve, though it adds that MCHP will have the "largest cyclical upside" vs peers when recovery does take shape

19 of 27 brokerages rate the stock "buy" or higher, 8 rate "hold"; their median PT is $75.00 - LSEG

As of last close, MCHP up 3.5% YTD vs 40.9% gain for Philadelphia SE Semiconductor index .SOX