Gleacher & Co. Reiterates a 'Buy' on Micron (MU); Rambus (RMBS) Trying to Hook Another Big Fish, but Impact Could Be Surprising
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Price: $111.58 -0.18%
Rating Summary:
45 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
45 Buy, 7 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Gleacher & Co. reiterates a 'Buy' on Micron Technology (NASDAQ: MU), PT $14.
Gleacher analyst, Doug Freedman, said, "MU stock has been under pressure since late April, surrendering 28% of its market cap due mainly to Rambus (Nasdaq: RMBS) concerns...We believe the recent weakness is a buying opportunity as we see a scenario where potential damages could be mitigated through the appeals process (tried and true in history), and believe these damages will be largely, if not completely, absorbed by off-balance sheet accruals (with potential bonus-back)."
"We believe MU fundamentals have turned a corner as MU's market is becoming more rational. We now foresee a more stable DRAM margin environment in the near- to medium-term driven by abating DRAM pricing pressures (particularly on DDR3) as cost efficiencies improve (42nm cross likely in the May quarter, solid contributions from Inotera on MU)."
For more ratings news on Micron Technology click here and for the rating history of Micron Technology click here.
Shares of Micron Technology closed at $8.49 yesterday.
Gleacher analyst, Doug Freedman, said, "MU stock has been under pressure since late April, surrendering 28% of its market cap due mainly to Rambus (Nasdaq: RMBS) concerns...We believe the recent weakness is a buying opportunity as we see a scenario where potential damages could be mitigated through the appeals process (tried and true in history), and believe these damages will be largely, if not completely, absorbed by off-balance sheet accruals (with potential bonus-back)."
"We believe MU fundamentals have turned a corner as MU's market is becoming more rational. We now foresee a more stable DRAM margin environment in the near- to medium-term driven by abating DRAM pricing pressures (particularly on DDR3) as cost efficiencies improve (42nm cross likely in the May quarter, solid contributions from Inotera on MU)."
For more ratings news on Micron Technology click here and for the rating history of Micron Technology click here.
Shares of Micron Technology closed at $8.49 yesterday.
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