Micron (MU): HPQ Talks DRAM and Flash Shortage - Mizuho
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Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating and $20 price target on Micron Technology (NASDAQ: MU) after HPQ noted on its earnings call that it sees DRAM and NAND flash shortages into SepQ and is looking to proactively build inventory.
Rakesh commented, "As we've noted, there is limited DRAM supply coming in 2H16 and we expect stable to upward DRAM pricing. HPQ noted doubling memory densities in handsets as driving a memory shortage in PCs. We believe this is positive commentary on mobile DRAM demand and pricing trends. We believe peers Samsung and Hynix are near capacity for DRAM production driving constrained 2H supply. HPQ's PSG revenue also came out ahead of expectations, with HPQ noting PCs improved more than forecasted and channel inventories inline; a positive for INTC and WDC as well. While HPQ was conservative on its OctQ PCs, our Taiwan ODM channel checks continue to point to a strong SepQ with an especially strong September monthly build."
Shares of Micron Technology closed at $15.51 yesterday.
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