Micron Technology (MU): Good Quarter Despite High Expectations - Susquehanna

October 5, 2016 6:24 AM EDT
Get Alerts MU Hot Sheet
Price: $17.67 +0.17%

Rating Summary:
    29 Buy, 9 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 24 | New: 8
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Susquehanna analyst, Mendhi Hosseini, reiterated his Positive rating on Micron Technology (NASDAQ: MU) and raised the price target to $21 from $20 after the company reported better than expected Aug Q EPS, driven by better revenues, OM and minority income (from Inotera). However, the mid point of EPS guidance ($0.12) was just in-line with the consensus estimate and below the buy-side expectation of high teens.

Improving DRAM fundamentals, combined with 10%+ decline in FY17 Cap-Ex (22% decline including Inotera) should help drive positive FCF in FY17. Therefore, the analyst raised his CY17 EPS estimate on a higher gross margin along with the price target. The $21 PT equates to 16x CY17 PE, 5x EV/EBITDA, 1.5x EV/sales. and 1.8x BV.

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 $17.80 yesterday.

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