Nomura Securities Upgrades Micron Technology (MU) to Buy; Sees $2.50-$3.00 in Earnings Power

December 12, 2013 7:31 AM EST
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Price: $22.18 --0%

Rating Summary:
    32 Buy, 8 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Nomura Securities upgraded Micron Technology (NASDAQ: MU) from Neutral to Buy with a price target of $30.00 (from $16.00).

"While we are late to the party, we see Micron's earnings power of $2.50-3.00 driving the stock toward $30 next year," analyst Romit Shah states. "Micron's shares have more than tripled from a year ago and the stock is easily the best performer in the SOX this year. Yet we believe there is more upside next year as the DRAM industry post consolidation is proving to be more resilient than we previously thought. We were skeptical whether DRAM pricing strength would continue following the production recovery at SK Hynix’s fab. In our view, the benefits of consolidation look more sustainable this time. Our bullish view on DRAM is predicated on disciplined supply growth and does not require a strong rebound in demand. Instead, we view the bar for demand as set low, with risks to the upside."

The firm moved CY13E EPS from $2.60 to $2.80 and CY14E EPS from $2.20 to $2.80.

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 $22.50 yesterday.

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