Micron (MU) Target Raised at Needham & Company; Sees 67% Upside

April 4, 2014 7:42 AM EDT
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Price: $21.89 -0.32%

Rating Summary:
    32 Buy, 8 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 1 | Down: 2 | New: 3
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Needham & Company analyst Rajvindra Gill reiterated a Buy rating on Micron Technology (NASDAQ: MU) and lifted his price target sharply from $34 to $40, representing 67% upside to yesterday's close.

Gill comments, "We are raising our PT on MU to $40 from $34 following better than expected quarter/guide due to continued favorable pricing in the NAND/DRAM markets thanks in part to the fire at the Hynix plant and lower DRAM supply due to NAND transitions. We remain optimistic about L-T pricing and we forecast DRAM bit supply growth rate in the 20-30% range owing to stable wafer output combined with slowing process node migrations. We believe MU could earn $3 in FY15 and combined with multiple expansion, which we expect to expand as investors realize that the industry is more profitable and more stable than in the past. We see continued upside at these levels."

The firm raised FY 2014 EPS from $2.55 to $2.85 and FY 2015 EPS was raised from $2.85 to $3.00.

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 $24.00 yesterday.

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