Micron Technology (MU) Sale of Lehi Fab Should Be Accretive to Financial Performance - JPMorgan

JPMorgan analyst Harlan Sur reiterated an Overweight rating and $130.00 price target on Micron Technology (NASDAQ: MU) after the company announced it is ceasing development of 3D XPoint and shifting resources to new memory products leveraging the industry connectivity standard interface Compute Express Link (CXL). In conjunction with the announcement, Micron is engaged in discussions for the sale of its Lehi, Utah facility that is dedicated to 3D XPoint production and is aiming to reach a sale agreement within CY21.

The analyst stated "It has been more than five years since Intel and Micron had jointly announced the technology and over a year since Micron introduced its X100 SSD based on 3D XPoint. As we have discussed since the inception of 3D XPoint, we felt it would take a number of years to bring products to market with significant investments in software and ecosystem development. In the meantime, 3D NAND has continued to become more cost competitive and DRAM, with lower latency, is increasingly required for datacenter workloads. Micron will take its learnings from its 3D XP development efforts and redeploy its resources toward industry standard CXL, an interface technology between CPU, memory, and storage."

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 $90.30 yesterday.

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