UPDATE: Bank Of America Reiterates On Micron Technology Due To Better Earnings Momentum

In a report published Tuesday, Bank of America analyst Simon Dong-je Woo reiterated a Buy rating on

, and raised the price target from $40.00 to $43.00. In the report, Bank of America noted, “We raise our PO from $40.0 to $43.0 due to the more positive outlook. "New guidance following May-end FQ3-14 results clearly confirms up-cycle or record-high profit for not only FQ4-14 but also FY15. The key contributor should be ASP - less cyclical and smaller erosion vs cost curve. Management's strategies (mix improvement, new tech deployment, disciplined capex, etc.) also show low execution risk (eg, proprietary brand for SSD, mobile DRAM strength leveraging Elpida, etc.). Net-net, we raise our EPS estimates for FQ4-14 and FY15 by 23% and 9% respectively at higher ASP. "Our PO implies 14x FY15E P/E but 3.2x PBR; high ROE/FCF should warrant valuation premium vs historical average (1-2x PBR).” Micron Technology closed on Monday at $31.26.