Cowen Says to Buy Micron (MU) on Today's Weakness; Sees Cost Execution Finally Improving

Cowen and Company affirms Micron Technology (Nasdaq: MU) with an Outperform rating and $15 price target following Q3 results and outlook issued by the company on Thursday night.

Analyst Tim Arcuri commented Friday: While guidance was below even our Street-low and this is hard to defend, we are buyers on weakness off this report. Beneath a weaker than expected DRAM ASP guide (partially due to contract/spot lag), cost execution is finally improving, 3D is a source of potential significant upside, and the supply/demand backdrop in both DRAM and NAND is better.

Estimate changes: We model F2016 revs/EPS from $12.2B/$0.00 to $12.2B/($0.08), F2017 revs/EPS from $12.7B/$0.10 to $13.5B/$0.00 and F2018 from $13.9B/$1.72 to $14.6B/$1.47. On a CY basis we model C2016/C2017/C2018 revs/EPS $12.1B/($0.41), $13.9B/$0.40 and $14.6B/$1.53.

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

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