Summit Research: Micron A 'Value Play' Ahead Of Q1 Earnings

Srini Sundararajan of Summit Research Partners commented in a note on Monday that

remains a “value play” ahead of its first quarter results. “We think that Micron will report a slight beat on the quarter on both revenue and earnings per share,” Sundararajan wrote. “We also think that the guidance will be likely better than expectations – given that it is a seasonally low quarter.” According to Sundararajan, Mobile DRAM and Server DRAM should be “stable” as new models of smartphones based on non-iOS user faces are being introduced. The analyst also notes that there is a transition going on from DDR3 to DDR4 so the number of products carrying the DRAM label will be diversified and that for the server portion, DDR4 fraction should keep increasing throughout the coming year. Sundararajan believes that shares are “quite undervalued” given the company's revenue and earnings per share trajectory are likely to “traverse up” for several more quarters. The analyst adds that the company's management needs to “engender more confidence” in its outlook such as “say something and execute it well” as shares are struggling to break the $35 barrier.