UPDATE: Bank of America Raises PO on Micron Technology as Shareholder Value Expected to Rise Post Elpida M&A
In a report published on Friday, Bank of America analyst Simon Dong-je Woo raised the price objective on Micron Technology (NASDAQ: MU) from $13 to $18 and maintained a Buy rating on the company.
In the report, Bank of America commented that, "We raise our PO from $13 to $18, fully reflecting the Elpida M&A, which is widely expected to be complete in a couple of months. The legal process in Japan has ended; only the US court's approval is left. Incremental FV/share should be $4-5 (EPS may rise $1; NAV may be $4-5bn), by our estimates. Net-net, our new research indicates substantial shareholder value creation (Elpida FY14 results: Sales $4bn, OPM 30%, depreciation 80% below normal levels, minimal tax, etc). We raise FY14E EPS (up by 23%) to a 10-year high of $2 (P/E only 6x) – consensus (Bloomberg) is at only $1."
Micron Technology closed on Thursday at $12.91
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|Oct 2014||Pacific Crest||Upgrades||Sector Perform||Outperform|
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