Micron (MU) PT Lifted to $21 at Cowen Ahead of Inotera Deal Closure

October 12, 2016 7:16 AM EDT
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Price: $22.18 --0%

Rating Summary:
    32 Buy, 8 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Cowen analyst Timothy Arcuri reiterated an Outperform rating and bumped his price target on Micron Technology (NASDAQ: MU) to $21.00 (from $19.00) ahead of the Inotera deal closure.

Arcuri commented, "We see Inotera adding ~$0.15-0.20 and $300-400MM to MU's EPS and FCF, respectively, in both C2017/18. Leverage will increase (PF leverage ~3.7x on a gross basis, ~2.5x on a net basis), but MU should still be able to rapidly de-lever and achieve 1.5x net debt/EBITDA by CYE17. Ultimately, we raise target $19 to $21 on same peer 5x multiple as Inotera should REDUCE MU's EV/EBITDA by ~0.5x."

The firm sees the closure of Inotera likely by mid-December and thinks that MU will begin to guide results with Inotera starting in the Feb Q.

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 $16.86 yesterday.

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