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Goldman Sachs Suggests Buying Put Spreads on Micron Technology


Goldman Sachs is out with a research report this morning, where is suggests that traders buy 1x2 put spreads on Micron Technology (NYSE: MU).

Goldman Sachs semiconductor analyst, James Schneider, sees 11% downside to Sell rating MU shares over the next 6-mths. He expects DRAM pricing to move lower over the next 6-9 months: (1) GS expects PC shipments to grow just 4% in 2011 vs expectations of 10%-plus growth, and (2) headwinds to DRAM demand from tablets.

Goldman recommends buying the October $9/8 1x2 put spread for a net credit of $0.10.

Micron Technology, Inc. is a manufacturer and marketer of semiconductor devices, principally dynamic random access memory (DRAM), Nandi Flash memory (NAND Flash and NOR Flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, embedded and mobile products.

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