UPDATE: Nomura Raises PT on Micron Technology on FQ2 Earnings Analysis

In a report published Friday, Nomura analyst Sidney Ho reiterated a Neutral rating on Micron Technology

, and slightly raised the price target from $8.00 to $9.00. In the report, Ho noted, “Rising DRAM prices and the prospect of turning profitable should keep investors excited in the near term. However, we are more cautious than consensus over the next 6-9 months, as we see (1) limited leverage for DRAM driven by market-minus model, (2) increased competition in specialty DRAM in 2H13, and (3) integration uncertainties. Micron delivered better-than-expected FQ2 results, with revenue upside from both DRAM and NAND. Revenue of $2.08bn and adjusted EPS of $(0.09) beat our estimates of $1.97bn/($0.18) and consensus of $1.92bn/($0.20). Gross margin improved to 18% from 12% in FQ1. Micron has decided to reconfigure a portion of its DRAM capacity to enable NAND flexibility. This makes sense given its capacity post-Elpida will be more weighted toward DRAM.” Micron Technology closed on Thursday at $9.07.