Micron (MU) Well Positioned to Capitalize on Improving DRAM and NAND Markets - Needham & Company
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Needham & Company analyst Rajvindra Gill reiterated a Buy rating and $33 price target on Micron Technology (NASDAQ: MU) after CFO, Ernie Maddock, responded to questions from a packed audience at today's Needham Growth Conference.
Gill commented, "Ernie spoke about investor interest in the current NAND environment, which is expected to be tight in 1H17 but grow exiting the year. Micron expects both supply and demand bit growth to be 30-40% this year but did not break out growth by quarter. Micron also stated that it expects a meaningful transition to its second-generation 64 layer 3D NAND by the end of the year, which will allow for double the bits per wafer at a 30% reduction in cost. MU will contribute significantly in the 15-20% bit supply growth in DRAM this year with its transition to the 1X node. MU forecasts 20-25% DRAM demand growth this year. PCs are a little less than 20% of total DRAM market and mobile is roughly 40% of the market. MU is seeing demand for its specialty DRAM memory in the Automotive sector, as higher level ADAS applications and infotainment demand higher memory content per vehicle. We believe that Micron is poised to exceed the 2014 cycle, where demand is far outpacing supply and DRAM is targeting more than just PCs – cloud computing, data centers, networking, graphics, and automotive. Net, with DRAM products entering multiple end markets, and NAND targeting high-growth enterprise SSDs and mobile storage, we believe Micron is well positioned to capitalize on the improving DRAM and NAND markets."
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 $22.34 yesterday.
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