MU Poised to Benefit from Improvement in Memory Market
Analysts at UBS maintain their “buy” rating on Micron Technology Inc (NYSE: MU), while raising their estimates for the company. The target price for MU is set to $9.
According to UBS, MU is expected to witness marginally better than seasonal PC demand entering into 2010. Micron Technology would benefit from higher ASPs (average sales prices) during the forthcoming quarters due to limitations in memory bit supply growth in the industry through 2011. MU is expected to benefit from an improvement in the long-term outlook of the memory market, UBS adds.
Industry checks indicate that MU’s production cost trends are likely to improve in the forthcoming quarters. UBS has raised it EPS estimates for FY10 and FY11 from -$0.13 to $0.16 and from $0.34 to $0.54, respectively.
