Micron Technology (MU): Good Quarter Despite High Expectations - Susquehanna

Susquehanna analyst, Mendhi Hosseini, reiterated his Positive rating on Micron Technology (NASDAQ: MU) and raised the price target to $21 from $20 after the company reported better than expected Aug Q EPS, driven by better revenues, OM and minority income (from Inotera). However, the mid point of EPS guidance ($0.12) was just in-line with the consensus estimate and below the buy-side expectation of high teens.

Improving DRAM fundamentals, combined with 10%+ decline in FY17 Cap-Ex (22% decline including Inotera) should help drive positive FCF in FY17. Therefore, the analyst raised his CY17 EPS estimate on a higher gross margin along with the price target. The $21 PT equates to 16x CY17 PE, 5x EV/EBITDA, 1.5x EV/sales. and 1.8x BV.

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 $17.80 yesterday.

You May Also Be Interested In

• Midday movers: Tesla, Blackstone, Las Vegas Sands fall; DR Horton rises
• Micron set to get $6.1 billion in chip grants from US
• Procter & Gamble (PG) revenue falls short of expectations, raises full-year earnings guidance