Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
After a trip to Asia, Mizuho is dropping its bullish stance on Lam Research Corporation (NASDAQ:LRCX) and Western Digital Corp (NASDAQ:WDC), but remains positive on Micron Technology, Inc. (NASDAQ:MU), a company the sell-side firm describes as a "better house in a tough neighborhood."
The Analyst
Mizuho Securities' Vijay Rakesh downgraded Lam Research from Buy to Neutral with a $165 price target.
The analyst downgraded Western Digital from Buy to Neutral with a $65 price target.
Rakesh maintained a Buy on Micron with a price target lowered to $60.
The Thesis
Rakesh cited the following factors in Monday's ratings changes. (See his track record here.)
- NAND average selling prices should continue falling at a low-double-digit rate through the first quarter of 2019.
- NAND ASP should continue falling post-Q1 of 2019 at a high-single digit rate.
- Consensus estimates calling for Western Digital to report flat gross margins are optimistic given the risk of significant downside.
- Lam Research faces multiple troubles ahead, including NAND bit growth cuts, Samsung NAND pushouts and delays at China's YMTC and Wuxi DRAM fab pushouts.
- Micron boasts more favorable DRAM discipline and a faster stabilization outlook and is supported by a $10-billion stock buyback program.
Price Action
Lam Research shares were down 0.94 percent at the time of publication Monday, while Western Digital shares were down 0.63 percent and Micron shares were up 0.27 percent.
Related Links:
NAND Headwinds Are Behind RBC's 'No-Drama Downgrade' Of Western Digital
Goldman Sachs Downgrades Micron: 3 Reasons Why
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!