RBC Capital Maintains an 'Outperform' on Micron Technology (MU); Terms of Elpida Deal Attractive

July 2, 2012 10:57 AM EDT
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Price: $21.89 -0.32%

Rating Summary:
    32 Buy, 8 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 1 | Down: 2 | New: 3
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RBC Capital maintains an 'Outperform' on Micron Technology (NASDAQ: MU) price target of $11.00.

Analyst, Doug Freedman, said, "Terms of the deal are attractive, as we believe Elpida and Rexchip provide MU with considerable manufacturing scale and R&D synergies. We are encouraged on the ROI and visibility of when the deal becomes accretive to cash flows. While schedule and timing of the deal is largely in-line with our expectations, assessing Elpida’s financial performance could be somewhat challenging in the near-term, though we believe the recent stronger DRAM pricing environment could help alleviate operating losses."

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.

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