RBC Capital Maintains an 'Outperform' on Micron Technology (MU); Return to Profitability Likely Pushed Out
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Price: $932.97 +2.48%
Rating Summary:
52 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 10 | New: 18
Rating Summary:
52 Buy, 11 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 10 | New: 18
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RBC Capital maintains an 'Outperform' on Micron Technology (NASDAQ: MU) price target of $11.00.
Analyst, Doug Freedman, said, "It appears increasingly likely that MU could acquire all of Elpida, given exit of SK Hynix from the bidding process. While our opinion is not complete, our first pass consolidated model suggest EPS dilution. We continue to prefer that 1) Elpida assets are removed from the memory supply chain or 2) MU acquires a portion of Elpida assets for re-purposing."
"Net/net: We are hard-pressed to believe that the prospective deal could be accretive to EPS in the next 24 months. Micron appears to be taking the risk of diluting earnings in order to achieve market share gains. Consequently, we could turn more incrementally bearish on earnings growth should the transaction occur."
"For FY13 we estimate MU/Elpida EPS to be $0.31 vs. $0.85. For FY14 we estimate MU/Elpida EPS to be $1.12 vs. MU standalone $1.13."
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 $6.36 yesterday.
Analyst, Doug Freedman, said, "It appears increasingly likely that MU could acquire all of Elpida, given exit of SK Hynix from the bidding process. While our opinion is not complete, our first pass consolidated model suggest EPS dilution. We continue to prefer that 1) Elpida assets are removed from the memory supply chain or 2) MU acquires a portion of Elpida assets for re-purposing."
"Net/net: We are hard-pressed to believe that the prospective deal could be accretive to EPS in the next 24 months. Micron appears to be taking the risk of diluting earnings in order to achieve market share gains. Consequently, we could turn more incrementally bearish on earnings growth should the transaction occur."
"For FY13 we estimate MU/Elpida EPS to be $0.31 vs. $0.85. For FY14 we estimate MU/Elpida EPS to be $1.12 vs. MU standalone $1.13."
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 $6.36 yesterday.
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