AmTech Maintains Focus List Buy on Micron (MU) Ahead of Q3 Earnings

June 23, 2008 12:28 PM EDT

American Research Technology maintains its Focus List Buy on Micron Technology (NYSE: MU) ahead of the company's Q3 earnings, expected out after the close on Thursday, June 26. The firm also maintains its $9.50 price target on shares of Micron.

The firm said it expects a "relatively uneventful quarter and call as investors have already priced in a weaker near-term NAND pricing environment." In other words, AmTech feels that investors are "generally comfortable with consensus estimates". While the firm does have a Focus List Buy on Micron, it reiterates its stance that upside will not be driven by a short-term EPS beat, but rather by a steadily improving memory market over the next 6-12 months.

AmTech believes increased NAND demand during the second half of this year, "when coupled with Micron’s impressive cost-per-bit improvements", could prove to be a potential catalyst for upside.

The firm sees Micron reporting a Q4 (quarter ended August) loss of $0.11, versus the Street consensus of ($0.16) and sales of $1.67 billion, versus $1.59 billion. For FY09, AmTech expects Micron to report a loss of $0.68 on sales of $6.88 billion. The Street is currently expecting FY09 EPS of $0.00 and revs of $6.93 billion.

Micron Technology, Inc. engages in the manufacture and marketing of semiconductor devices worldwide.

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