Needham & Company Upgrades Micron Technology (MU) to Strong Buy; $50 PT
- UPDATE: Hewlett-Packard (HPQ) Reports In-Line Q4 EPS; Guides Q1, FY15 EPS
- Market Wrap: GDP Stronger than Expected in Q3; Falcone Departing Harbinger; House Prices Flat in Sept.
- After-Hours Stocks Movers 11/25: (VEEV) (BLOX) (ADI) Higher; (VNET) (CTRP) (PWRD) Lower (more...)
- Veeva Systems (VEEV) Tops Q3 EPS by 1c, Q4 Guidance Tops Views
- Signet Jewelers (SIG) Tops Q3 EPS by 3c; Guides FY15 EPS Above Expectations
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
- UPDATE: Citi Upgrades Petrobras (PBR) to Buy
- UPDATE: Macquarie Downgrades Level 3 Communications (LVLT) to Neutral
- Workday (WDAY) PT, Estimates Lowered at FBR Capital Following Q3 Results
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!