RBC Capital Sees Limited Impact on Micron (MU) from Hiroshima Earthquake

March 18, 2014 6:16 AM EDT
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Price: $21.74 --0%

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RBC Capital analyst Doug Freedman commented on Micron Technology (NASDAQ: MU) amid Friday's 6.2 earthquake that impacted Hiroshima, Japan. Micron estimates a low-single-digit percent reduction in planned DRAM wafer production over the next 90 days. More specifically, the earthquake caused a portion of the tools at the 300mm fab to automatically turn off, as production was temporarily impacted.

On the impact, Freedman said, "We estimate that curtailed DRAM production as a result of Friday’s earthquake in Hiroshima, Japan, could result in a ~$0.02 impact (or ~$50mil in revenues) on MayQ EPS. Market share could be at risk, so it will be critical to monitor Micron’s ability to ramp up its Hiroshima operation to pre-earthquake levels. Expect DRAM pricing to potentially stabilize as a result in the near term."

The firm maintained an Outperform rating and price target of $28.00.

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 $23.93 yesterday.

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