Micron Gets Six Price Target Hikes on Stellar Q2 – TheTradersWire

Micron Gets Six Price Target Hikes on Stellar Q2

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Micron Gets Six Price Target Hikes on Stellar Q2

By Shoshanna Delventhal | March 26, 2017 — 4:08 PM EDT

Shares of U.S.-based DRAM and NAND chip market leader Micron Technology Inc. (MU) hit a multiyear high on Friday, closing up 7.4% at a price of $28.43 per share.

As the Boise, Idaho-based semiconductor manufacturer’s stock reflects an approximate 174% increase year over year (YOY), a wave of analysts issued bullish notes on the chip maker, upgrading shares and lifting their price targets after fiscal Q2 earnings and guidance blew past expectations.

‘The Sun, the Moon and the Stars …’

Analyst Betsy Van Hees at Loop Capital, who maintains a buy rating and lifts her price target on MU from $30 to $25, indicates “the sun, the moon and the stars remain aligned for Micron as it benefits from the sweet spot of the memory cycle.” MKM Partners, Deutsche Bank, Credit Suisse, Nomura, Barclays, Pacific echoed this sentiment.

Barclays’ Blayne Curtis, with an overweight rating on Micron’s shares, lifted his price target from $26 to $35, noting “favorable supply/demand dynamics continue to support healthy pricing and the company improves cost.” Curtis also noted the magnitude of outperformance​ as attributable in part to Micron’s recent integration of Taiwanese Inotera Memories and new technologies ramp up. The analyst concluded, “we remain cognizant that the environment could eventually reverse.” (See also: Micron Closes $4.0 billion Inotera Deal.)

Joining the Bandwagon

MKM Partners, with a buy rating on Micron stock, increased its price target from $34 to $38, as Deutsche Bank, also with a buy rating, lifted its price target from $35 to $30.

John Pitzer of Credit Suisse, with an outperform rating on Micron’s shares and a new $40 price target says, “while MU is clearly benefiting from better cyclical pricing, the more important drivers seem more sustainable—mix, cost-downs and scale efficiencies.”

Nomura’s Romit Shah reiterated a buy rating on Micron and lifted his price target 33% to $40, applauding Micron’s record FQ3 annual earnings guidance of $6.

“Micron is benefiting to an almost comical degree from strong memory trends,” said Pacific Crest analyst Weston Twigg, with a sector weight rating on shares of the DRAM and NAND chip market leader. (See also: Micron Soars on Another Upbeat Earnings Report.)

 
Published at Sun, 26 Mar 2017 20:08:00 +0000

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