UPDATE: Needham & Company Reiterates Buy Rating, Raises PT on Spansion Following Micron Sales of Assets to Intel

In a report published Friday, Needham & Company analyst Rajvindra S. Gill reiterated a Buy rating on

, and raised the price target from $15.00 to $16.00. In the report, Needham & Company noted, “Micron (MU, N/R) has agreed to sell its 200mm NOR fab in Israel to Intel. Over time, MU plans to consolidate production to their 300mm fab in Manassas, VA (45nm) to go along with its 200mm NOR fab in Singapore. We estimate the Israel fab represents 10-11% of global NOR capacity; of which 7-8% of capacity could come offline if we assume MU can shift 1/3 of the production to Manassas. We believe this transaction is significant: it will reduce capacity in the market and should help stabilize pricing, which has been in decline since 2010. We view this event as positive for CODE as the #1 supplier in the NOR market. Maintain Buy; $16 PT.” Spansion closed on Thursday at $10.95.