Micron Technology (MU) PT Raised to $50 at Susquehanna

September 19, 2017 6:52 AM EDT
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Price: $73.32 +3.85%

Rating Summary:
    38 Buy, 9 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 19 | New: 11
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Susquehanna analyst Mehdi Hosseini raised estimates and his price target on Micron Technology (NASDAQ: MU) to $50.00 (from $40.00) while maintaining a Positive rating to account for better ASP/cost trends.

Into August-quarter earnings, Hosseini remains comfortable with their above consensus EPS estimate of $1.87, though don’t rule out EPS closer to $2.00 driven by margin upside.

Key topics into the earnings and conf call: (1) margin trends and to what extent can OM exceed 40%, (2) 18nm mix of DRAM bit capacity by YE17/YE18, (3) 64L 3D NAND bit/wafer capacity by YE17/YE18, (3) plans for new DRAM & NAND clean rooms/fabs, (4) strategy update and how the new management team plans on moving up the (NAND/SSD) stack, (5) 3D XPoint (SSD) update and whether MU is generating any revenues, (6) FY17/FY18 FCF margins exceeding 10%.

"All in all, we expect stock to move towards our updated PT of $50, driven by prospects of higher normalized earnings, and continued re-rating," the analyst commented.



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