Three Bullish Analysts Weight in on Micron Earnings

Micron Technology’s MU two day move looks like the graph of x squared after the company announced third quarter results, which beat on the top and bottom lines.

Raymond James: Strong Buy, $40 Price Target

Raymond James called third quarter results “solid” and mainted the highest rating on Micron.

Further, the analyst commented on the company, “We like Micron’s solid execution and steady-as-she-goes management mentality as it relates to no wafer additions and margin maximization efforts in NAND (16nm and TLC ramp) and DRAM (20nm and DDR4).”

Jefferies: Buy, Raises Price Target to $38 From $32

Similarly, Jefferies cited stability in the industry as a key reason for strong results. The analyst also estimates that approximately 83 percent of free cash flow was returned to shareholders in the form of buybacks.

The increase in price target is based on multiple expansion and the likelihood for better than expected earnings.

Credit Suisse: Outperform, $50 Price Target

Although still bullish on Micron, Credit Suisse pointed out weaknesses spotted in the most recent earnings report.

“Two near-term set-backs: NAND continues to under-earn waiting for 16 nm and TLC (4Q14) and DRAM pricing (guided flat q/q) was more impacted by mix (AAPL mobile) than we had anticipated. In addition, the current Inotera/MU agreement which is schedule to be re-negotiated end of 2014 is currently skewed more favorably to the former than the later – perhaps the most significant reason why GM has been flat for 3Qs despite a healthy DRAM pricing environment.”

Shares of Micron are still shooting higher and were last up almost five percent.