Investors are Overlooking Micron's (MU) Strengths - Jefferies

Shares of Micron Technology (NASDAQ: MU) are down 27 percent over the past three months but analysts at Jefferies believes shares should be bought.

The firm said said investors are ignoring strength in market DRAM prices, combined with Micron's industry-leading Server DRAM mix, "translate to higher gross margins in 2H12 and CY13."

Meanwhile, shares of are trading at below its 2008 trough valuation, the firm notes. This both on a standalone basis, and potentially including Elpida's assets.

"We think a C2Q12 miss is baked in, but higher 2H12/CY13 gross margins are not. Buy especially on weakness."

The firm maintained their Buy rating and price target of $11.00. The firm lowered Q2 EPS from ($0.25) to ($0.27), FY12 from ($0.66) to ($0.75) and FY13 from $0.84 to $0.79.

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $5.92 yesterday.

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