Deutsche Bank Sees Catalysts in Micron (MU)
Deutsche Bank maintained a Buy rating on Micron Technology (NASDAQ: MU) with a modified price target of $20.00 (from $28.00). Comments follow Q4 results. Analyst Sidney Ho sees catalysts in 2016.
"MU delivered a surprising beat for F4Q but guided F1Q below consensus. That said, we believe the magnitude of the miss is roughly in line with investors' expectations. While business will likely remain choppy in the next two quarters, there are a number of catalysts (20nm DRAM, new Inotera arrangement, 16nm TLC and 3D NAND) that should provide cost tailwinds for MU starting in mid-FY16. Furthermore, potential capex cuts by memory suppliers (esp Samsung) should lead to better supply-demand next year. While we cut our ests and PT for MU today, we believe risk-reward is attractive for a recovery play in 2016," said Ho.
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Shares of Micron Technology closed at $14.77 yesterday.