Micron (MU) PT Trimmed to $18 at Sterne Agee CRT Post Q2; Maintains 'Buy'
Sterne Agee CRT analyst Douglas Freedman trimmed his price target on Micron Technology (NASDAQ: MU) to $18.00 (from $19.00) following results but maintained a Buy rating. The analyst said margin improvement more of a matter of when, not if.
Freedman commented, "We remain opportunistic buyers of MU after another fairly disappointing quarterly result and outlook, as we view the qualification delay and the lack of GM upside as temporary, not structural issues. Our investment thesis remains 2H16 centered, where we see multiple margin expansion opportunities, including: 1)on-track production ramp of 20nm DRAM and 3D NAND, 2) business model transforming with full ownership of Inotera acquisition, 3) a more rationalized DRAM market with production adjustment at Samsung. Current risk/reward profile appears attractive with good downside support, and we believe the upcoming fundamental recovery will drive P/BV toward our target of 1.4x, which is the basis for our new PT of $18, with BVPS est of $12.72."
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Shares of Micron Technology closed at $10.48 yesterday.