UPDATE: JP Morgan Raises PT on Micron Technology on Favorable DRAM/NAND Fundamentals

In a report published Friday morning, JP Morgan analysts reiterated a Neutral rating on Micron Technology MU and a raised the price target from $7.50 to $10.50 In the report, JP Morgan stated, “Micron posted F2Q sales results that came in better than ours and the consensus estimates, due mainly to better margins, higher DRAM bit supply from Inotera (post JV restructuring) and strong demand for NAND (particularly SSDs). Revenue of $2.08 billion (+13.3% Q-Q, +3.4% Y-Y) was ~ $145M above our estimates due mainly to strong DRAM sales and the incremental DRAM supply from the revised Inotera JV agreement in mid January (up +24% Q/Q) and NAND sales (up +12% Q/Q), offset by seasonally weak NOR revenues (down 14% Q/Q). GAAP loss per share (including options) of $(0.28) was $0.06 lower than our expectations due mainly to a non-cash currency hedging-related charge of $127mm in F2Q (to be reversed upon closing of Elpida deal). In the absence of this charge, EPS results would have been better than ours and the consensus estimates." Micron Technology currently trades at $10.07.