Baird Upgrades Micron Technology (MU) to Outperform

Baird upgraded Micron Technology (NASDAQ: MU) from Neutral to Outperform with a price target of $18.00 (from $12.00).

Analyst Tristan Gerra commented, "Upgrading to Outperform on an improving gross margin outlook, improving cost structure as 20nm continues to ramp, DRAM price stabilization, and positive NAND flash outlook for the rest of the year. Samsung may shift meaningful capacity from DRAM to NAND this second half. Near term, PC units are rebounding above expectation (off a dismal 1Q), while the China smartphone market is also rebounding."

The analyst expects DRAM pricing to decline by about 10% a quarter for the rest of the year, while Micron has an opportunity for a 10-15% improvement in its DRAM cost structure in 2H16 versus 1H16 as a result of an improving 20nm mix.

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 $12.31 yesterday.

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