Microchip Shares Headed Lower on J.P. Morgan Downgrade
Microchip (MCHP) shares are headed lower in early trading after J.P. Morgan semiconductor analyst Christopher Danely cut his rating on the stock to Neutral from Overweight.
In a research note, Danely says that the move reflects “a slowdown in the Chinese consumer end market and the stock’s high valuation.” Danely said that during a trip to Asia this week, almost every company he met with said they are seeing slowing Chinese consumer end market demand due to the earthquake in Szechwan province. He writes that most companies are hopeful that end demand will stabilize and improve just before the Olympics in late July and early August.
