Needham & Company Upgrades Micron Technology (MU) to Strong Buy; $50 PT
- Market Wrap: Adv. Q3 GDP Outpaces; Citi Lowers Q3 Results; Starbucks Percolates in Q3
- Starbucks Coffee (SBUX) Reports In-Line Q4 EPS
- Citigroup (C) Adjusts Q3 Results Lower
- After-Hours Stock Movers 10/30: (MELI) (GPRO) (AXTI) Higher; (AEGR) (TRMB) (TPX) (SBUX) Lower (more...)
- LinkedIn (LNKD) Tops Q3 EPS by 5c; Guides FY14 EPS Above Views
Needham & Company upgraded Micron Technology (NASDAQ: MU) from Buy to Strong Buy with a price target of $50.00 (from $40.00) citing long-term tailwinds in NAND gross margins.
Analyst Rajvindra Gill said, "While implied GM guidance was slightly below expectations, we see MU making the right decision to invest in controller and firmware in order to grow its SSD business in the future. We urge investors to look past the temporary NAND GM hit from these upfront costs and focus on the materially improving NAND GMs that we expect in CH15 as MU benefits from the cost advantages of an increasing mix of 16nm TLC (15-20% discount) and the ramp of its proprietary SSD solutions. In addition, we increase our P/E fwd multiple to 15x as we believe valuation multiples in consolidated industries eventually expand to 15-20x."
The firm raised FY 2014 EPS from $2.85 to $3.06 and FY 2015 EPS from $3.00 to $3.40.
Shares of Micron Technology closed at $31.26 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Piper Jaffray Upgrades Grand Canyon Education (LOPE) to Overweight; Solid Fundamentals and Potential Go Private Deal
- Glu Mobile (GLUU) PT, Estimates Slashed at Northland Capital; 'Outperform' Rating Maintained
- Electronic Arts (EA) PT, Estimates Lifted at Benchmark Amid Solid Q2
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, Hot Upgrades, Upgrades
Related EntitiesNeedham & Company
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!