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Sterne Agee Reiterates Buy, $11 Target on Micron Technology

Sterne Agee maintains its Buy rating and $11 target on Micron Technology (NASDAQ: MU) on thoughts of the Elpida bankruptcy.

Sterne Agee notes, "We believe with Elpida filing for bankruptcy protection today, especially with cash constraints to pay creditors, could imply some capacity coming out of DRAM. As we had noted before, Elpida has 2 Fabs, one in Hiroshima, Japan and the other is the Rexchip fab in Taiwan; both are 300mm and have 100K wfpm (wafers-per-month) capacity each. We believe, like the Qimonda (QI) bankruptcy in 2008, Elpida could sell off some of its assets, potentially the Hiroshima fab, to pay off creditors and even sell some additional 300mm fab equipment as was the case in the QI bankruptcy."

MU closed at $7.91 a share on Friday.

Posted-In: Sterne AgeeAnalyst Color Price Target Reiteration Intraday Update Analyst Ratings

 

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