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UPDATE: J.P. Morgan Reiterates Neutral Rating, Lowers PT on Micron Technology

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In a report published Friday, J.P. Morgan & Co. reiterated its Neutral rating on Micron Technology (NASDAQ: MU), but slightly lowered its price target from $8.50 to $7.50.

J.P. Morgan noted, “Micron reported F4Q revenue of $1.96 B, which was slightly lower than ours and consensus estimates, mainly due to a combination of improving NAND and stable NOR demand - offset by continued weakness in DRAM (soft PC fundamentals). Micron's embedded solutions group (ESG) remains a shining star posting an OPM of +25% on revenues of $285mm, while the wireless segment underperformed (OPM -35%) underscoring weakness in feature phone demand. Both client/enterprise SSD revenue also grew in 4Q as the company sees strong design win traction with OEMs. Gross margin in 4Q improved slightly by 40bps to 11.2%. F1Q guidance suggests that revenues and GM to remain flat/down Q/Q given improving NAND but continued weak DRAM fundamentals. Elpida acquisition is on track to close in 1H13.”

Micron Technology closed on Thursday at $6.02.

Posted-In: J.P. Morgan & Co.Analyst Color Price Target Analyst Ratings

 

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