UPDATE: Needham & Company Initiated Coverage on Micron Technology as Stock is at Cusp of Multiple Expansion

In a report published Tuesday, Needham & Company analyst Rajvindra S. Gill initiated coverage on

with a Buy rating and $30.00 price target. In the report, Needham & Company noted, “We initiate coverage of MU with a Buy rating and establish a $30 PT. While we clearly feel late to the ‘party' (stock is +240% YTD), we argue that the next chapter in the story is multiple expansion. In CY13, despite the big move in the stock, the P/E fwd multiple actually contracted ~44%. In order to generate multiple expansion, investors need to believe that consolidation in the DRAM/ NAND industries will result in 1) sustainable profits, 2) reduced volatility in earnings, 3) stable pricing and 4) better allocation of capital. In this report we highlight the consolidation in the HDD market as a case study on multiple expansion and believe it sheds light on Micron's future.” Micron Technology closed on Monday at $21.27.