** 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

(Reporting by Utkarsh Tushar Hathi)

((utkarshtushar.hathi@thomsonreuters.com))