Nomura Securities Maintains a 'Neutral' on Micron Technology (MU); Favorable Terms in Elpida Deal
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Price: $11.31 +2.26%
Rating Summary:
16 Buy, 10 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
16 Buy, 10 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade MU Now!
Nomura Securities maintains a 'Neutral' on Micron Technology (NASDAQ: MU) price target of $8.00.
Analyst, Sidney Ho, said, "Micron formally announced the sponsor agreement to acquire Elpida. We consider the terms favorable for Micron, with minimal upfront cash requirements. The deal is expected to be accretive within 12 months from the close of the transaction in 1H 2013. Clearly, there are still risks to execution and integration, but we think the attractive price and terms outweigh the risks."
"While the terms of the Elpida deal is more attractive than we expected, we believe the Street mostly understands the long-term benefits of DRAM industry consolidation. That said, the weakness in NAND remains an overhang despite recent signs of stabilization. We are staying on the sidelines until we see more evidence of end demand improving."
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 $6.31 yesterday, with a 52 week range of $3.97-$9.16.
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Analyst, Sidney Ho, said, "Micron formally announced the sponsor agreement to acquire Elpida. We consider the terms favorable for Micron, with minimal upfront cash requirements. The deal is expected to be accretive within 12 months from the close of the transaction in 1H 2013. Clearly, there are still risks to execution and integration, but we think the attractive price and terms outweigh the risks."
"While the terms of the Elpida deal is more attractive than we expected, we believe the Street mostly understands the long-term benefits of DRAM industry consolidation. That said, the weakness in NAND remains an overhang despite recent signs of stabilization. We are staying on the sidelines until we see more evidence of end demand improving."
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 $6.31 yesterday, with a 52 week range of $3.97-$9.16.
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