Nomura Securities Maintains a 'Neutral' on Micron Technology (MU); Looking Into Debt Issuance
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Price: $971.66 +2.30%
Rating Summary:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
52 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Micron Technology (NASDAQ: MU) price target of $8.00.
Analyst, Sidney Ho, said, "Micron plans to issue $1.0bn of convertible senior notes, including over-allotment, due 2032. The company plans to use the proceeds for general corporate purposes, including capital expenditures, working capital, strategic acquisitions and joint ventures...While investors may view the new debt issuance as a step toward acquiring Elpida’s assets, we believe the primary motivation is to refinance existing debt. If Micron repays $837mn (face value of $949mn) of convertible notes due in 2014 using the proceeds, then the next scheduled payment will not occur until 2027."
Ho sees interest expense increasing by $10 mln per quarter and Micron will have to raise additional capital if the company's bid for Elpida's assets are successful. Although, Ho did note that Micron was willing to pile on more debt(to capital) for what they see as the right opportunities.
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 $7.17 yesterday.
Analyst, Sidney Ho, said, "Micron plans to issue $1.0bn of convertible senior notes, including over-allotment, due 2032. The company plans to use the proceeds for general corporate purposes, including capital expenditures, working capital, strategic acquisitions and joint ventures...While investors may view the new debt issuance as a step toward acquiring Elpida’s assets, we believe the primary motivation is to refinance existing debt. If Micron repays $837mn (face value of $949mn) of convertible notes due in 2014 using the proceeds, then the next scheduled payment will not occur until 2027."
Ho sees interest expense increasing by $10 mln per quarter and Micron will have to raise additional capital if the company's bid for Elpida's assets are successful. Although, Ho did note that Micron was willing to pile on more debt(to capital) for what they see as the right opportunities.
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 $7.17 yesterday.
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