Brean Capital Raises Price Target on Micron Technology (MU) Following 4Q Beat
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Brean Capital reiterated a Buy rating on Micron Technology (NASDAQ: MU), and raised the price target to $23.00 (from $18.00), following the company's 4Q earnings report. MU reported revenue and non-GAAP EPS of $3.217B and $(0.05), compared to the Street's estimates at $3.150B/ $(0.12).
Analyst Mike Burton commented, "Similar to the May-16 quarter, expectations were above average for Micron heading into the Aug-16Q as industry data suggested a clear improvement to MU’s top line. Micron delivered strong top-line growth and better EPS than the Street for the Aug-16Q. In terms of guidance, the company guided both revenue and EPS above the Street for the Nov-16Q, however, the quality of the raise is poor considering MU is changing some of its accounting practices, which is positively affecting EPS by ~$0.13. We continue to like MU since it is in the early part of a positive cycle. We believe Industry-wide cuts to DRAM CAPEX will deliver a favorable supplydemand balance in 1H17 and that its improved position in non-volatile memories (3D NAND and XPoint) will help contribute to its earnings power going forward. We believe that MU’s cost cutting internal priorities are still on track and that the demand picture is improving, thus we are maintaining our Buy rating on MU, and increasing our target price to $23 with our rising earnings estimates."
Shares of Micron Technology closed at $17.80 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesEarnings, Brean Capital
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