Needham & Company Starts Micron Technology (MU) at Buy, $30 PT

December 3, 2013 6:36 AM EST
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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: 24 | Down: 17 | New: 14
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Needham & Company initiates coverage on Micron Technology (NASDAQ: MU) with a Buy rating and $30 price target.

"While we clearly feel late to the "party" (stock is +240% YTD), we argue that the next chapter in the story is multiple expansion," analyst Rajvindra S. Gill states. "In CY13, despite the big move in the stock, the P/E fwd multiple actually contracted ~44%. In order to generate multiple expansion, investors need to believe that consolidation in the DRAM/ NAND industries will result in 1) sustainable profits, 2) reduced volatility in earnings, 3) stable pricing and 4) better allocation of capital. In this report we highlight the consolidation in the HDD market as a case study on multiple expansion and believe it sheds light on Micron's future."

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 $21.27 yesterday.

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