Jefferies Cuts Price Target on Micron Technology (MU) Following EPS Miss
Jefferies reiterates a Buy rating on Micron Technology (NASDAQ: MU), and cut the price target to $36.00 (from $40.00), following earnings results. MU reported revenues of $3.85B (Street $3.9B), and non-GAAP EPS of $0.54 (Street $0.57). Guidance for CQ3 revenues of $3.58B (Street $4.17B) also missed.
Analyst Sundeep Bajikar commented, "We still expect DRAM under-supply in 2H15, with timing of DRAM price stabilization potentially delayed to NovQ from AugQ. We continue to expect mobile DRAM content growth and PC semiconductor restocking to be the primary drivers of DRAM under-supply. We believe Micron is taking the right supply-side actions, and based on our PC inventory cycle framework, we recommend buying the stock aggressively at current levels."
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Shares of Micron Technology closed at $24.02 yesterday.