Market Overview

Morgan Stanley Reiterates on Micron Technologies

Related MU
Micron Under Selling Pressure
Freeport-McMoRan, Micron, Viacom: Fast Money Picks For January 25
Technology Rich And Deep In Debt: Can Micron Fund Its Future? (Seeking Alpha)

In a report published Wednesday, Morgan Stanley analyst Alicia Tam reiterated Equal-weight on Micron Technologies (NASDAQ: MU), keeping its price target NA.

According to the report, it has been a very good quarter, above consensus estimates. It is believed that earnings are above trend due to Hynix fire, but the analysts are encouraged by MU's execution. It is also believed the stock grinds higher as long as pricing remains strong, but sustainability concerns linger.

“Primary variance from our model was DRAM bit growth well above our estimates (69% vs. 45% guidance), as organic growth at Elpida+MU appeared to be about 20% sequentially,” the report said. “This had some impact on other line items (prices lower than our ests due to upside from PC/mobile mix, but better cost improvements with more bits vs. fixed costs). Opex also substantially lower, which was $0.03 of upside vs. our model. We expect earnings to peak in the February quarter (though forecasting memory is an inexact science), with still solid earnings in 2h14. Operating margins in Feb of 23% are similar to what MU has typically seen at cycle peaks, similar to peers, and we continue to be cautious about paying a high multiple for peak earnings.”

MU closed Tuesday at $21.73 with shares trading up at 5.13 percent.

Latest Ratings for MU

Feb 2017Bank of AmericaUpgradesUnderperformBuy
Dec 2016Summit Redstone PartnersUpgradesSellBuy
Dec 2016Loop CapitalInitiates Coverage OnBuy

View More Analyst Ratings for MU
View the Latest Analyst Ratings

Posted-In: Alicia Tam Morgan StanleyAnalyst Color Reiteration Analyst Ratings


Related Articles (MU)

View Comments and Join the Discussion!