Piper Jaffray Reiterates Overweight on Micron Technology
Piper Jaffray reiterates an Overweight rating and a $12 price target on Micron Technology (NASDAQ: MU).
Piper Jaffray notes, “Micron reported FQ3'12 revs of $2.2bn (up 5% q/q, cons $2.0bn; PJC $1.9bn) as the company benefited from a 20% q/q increase in DRAM sales (40% of total). EPS of ($0.32) missed Street estimates of ($0.20), as NAND ASP decline of 39% q/q was worse than expected despite a 29% q/q decline in costs. Micron's overall bit shipments for both DRAM (12% qoq) and NAND (68% qoq) exceeded its prior guidance. The company also articulated that while they remain the exclusive party to negotiate for Elpida, they are being mindful not to dilute existing equity holders nor take too much high interest bearing debt. Micron guided bit growth for its FQ4'12 to be down 8% while NAND is expected to be up 8% with DRAM ASP's likely remaining flat and NAND ASP likely down double digits. Reiterate OW and $12 PT.”
Micron Technology closed at $6.12 on Wednesday.
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