UPDATE: Piper Jaffray Reiterates Micron Technology at Overweight with $12 PT on NAND Strength
Piper Jaffray reiterated its Overweight rating and $12 price target on Micron Technology (NASDAQ: MU) following the latest quarterly results.
Piper Jaffray noted, "We expect NAND ASPs to strengthen given increasing mix of SSDs. Overall gross margins were up 40bps q/ q despite a 10% q/q revenue decline. ... While the prognosis for NAND remains robust, we do not see DRAM recovering anytime before C4Q12, as key drivers such as Windows 8 and the subsequent PC refresh cycle gain traction. During the quarter, Micron generated $450m in cash flow from operations with cash in the balance sheet rising to $2.9bn. The stock is trading at <0.8x book value, which we believe is highly discounted given the supply rationalization taking place in both DRAM and NAND, as well as the Elpida acquisition."
Micron Technology closed at $6.01 on Thursday.
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