Piper Jaffray Cuts Price Target on Micron Technology (MU) Following 5c EPS Beat

Piper Jaffray reiterated an Overweight rating on Micron Technology (NASDAQ: MU), and cut the price target to $22.00 (from $23.00), following the company's 4Q15 earnings results. Revenue of $3.6B beat consensus of $3.56B. NonGAAP EPS of $0.37 beat the consensus estimate of $0.32.

Analyst Ruben Roy commented, "We reiterate our OW rating on MU shares following F4Q earnings that beat expectations. Despite concerns about PC DRAM ASP pressure, MU's ASP declines of 7% q/q likely reflect the company's pivot to other end markets where margins were stronger. PC DRAM inventories are not an issue at this point, but rather PC demand. However, MU will continue to shift mix to mobile and server to offset PC weakness. Nevertheless, guidance for F1Q16 will reflect ongoing PC ASP pressure, but we believe it could be the trough. Cost reduction catalysts in 2016 from the new Inotera supply agreement and improving 20nm yields should help margins recover. NAND markets remain relatively stable as MU continues making progress on 3D NAND. We continue to see value in MU shares following the recent selloff as the stock trades at 8x forward P/E vs. 17x for its semi peers."

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 $14.77 yesterday.

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