** Shares of chipmaker Microchip Technology MCHP.O rise 3.25% to $69.24 in premarket trading

** Co raised its expectations for third-quarter net sales on Monday, helped by recovery across end markets and strong bookings

** J.P. Morgan raises PT to $85 from $77, which represents a ~27% upside to the stock's last close

** Brokerage maintains "overweight" stance on the stock and says that as revenue scales, it expects Microchip to demonstrate strong operating leverage in its business model

** "We expect the company to drive additional revenue synergies from complementary sales of analog products, which has proven to be an effective strategy in the past," says J.P. Morgan

** Co will report fiscal third-quarter results on February 5

** Twenty-seven analysts rate the stock "buy" on average; median PT is $75.5 - data compiled by LSEG

** As of last close, MCHP is up ~16.3% in the past 12 months

(Reporting by Akriti Shah in Bengaluru)

((akriti.shah@thomsonreuters.com))