Micron (MU) Gains as UBS Research Suggests DRAM Price Stability

August 5, 2016 12:00 PM EDT
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Price: $21.74 -1.98%

Rating Summary:
    32 Buy, 8 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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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."

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 $14.03 yesterday.

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