Micron (MU) Gains as UBS Research Suggests DRAM Price Stability
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Micron Technology (NASDAQ: MU) is solid higher (4.9%) Friday after UBS analyst Stephen Chin reiterated a Buy rating and raised his price target of $17.00 (from $14.00) after the firm's Global I/O report on Memory revises upward their DRAM supply/demand forecasts due to more favorable near term pricing as DRAM spot pricing is up 17% from the early June lows, and 2H June contract pricing remained flat from 1H June. This is consistent with Micron's F3Q earnings call (30-Jun) commentary.
The firm's global team's recent checks suggest PC and smartphone DRAM demand in C2H16 will be supportive from a shipment or content perspective based on leaner inventory levels at memory suppliers and popular memory configurations for consumer PCs in the current back-to-school season.
"Contract price trends from now through late October will be key as it could provide a gauge for demand seasonality and Micron profitability," he said. "We keep a Buy rating as we believe Micron resolved its recent operational issues and a memory industry recovery should also benefit its stock."
Shares of Micron Technology closed at $14.03 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO Capital Raises Price Target on ManpowerGroup (MAN) Following 3Q Surprise
- Wedbush Raises Price Target on Citizens Financial Group (CFG) Following 3Q EPS Beat
- Needham & Company Raises Price Target on II-VI, Inc. (IIVI) Ahead of 1Q Release
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Trader Talk
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!