Microchip Technology (MCHP) shares surged Friday after the struggling chipmaker issued a better-than-expected forecast, ꧋and several analysts raised their price targets for the stock. 

Shares were up over 10% in recent✨ trading near $55, though even with Friday’s gains, the stock has lost about 40% of its valu𝓡e over the past 12 months.

The company said it anticipates fiscal first-quarter revenue of $1.02 billion to $1.07 billion and adjusted earnings per share of 18 cents to 26 cents, exceeding analysts' projections compiled by Visible Alpha.

“It looks like the bottom has finally been hit,” Jefferies analysts said following the results, adding, “we see the potential for a sharp snap back in the next couple of quarters” after the company posted a steep revenue decline in the fourth quarter. The analysts maintained a "buy" rating and price target of $70. 

Microchip’s fourth-quarter sales fell 27% year-over-year to $970.5 million. While a significant decline, it was less severe than Wall Street expected. CEO Steve Sanghi said the period “mar🥃ks the bottom of this prolonged industry down cycle for Microchip.”

Citi analysts, which raised their target to $55 from $50, said, “when the economy eventually recovers, Microchip should have the strongest bounce in fundamentals given the steep decline in revenue.” Meanwhile, Bank of America raised its target to $56 from $44 and upgraded the stock to “neutral” from “underperform.”