Nomura: Intel's Outlook A Positive For Micron

Shares of

has outperformed year-to-date, but most of the gains in share prices occurred during the first half of 2014. Analysts at Nomura commented on Friday that despite an outperformance, shares are still trading at a "sizeable" discount. The analysts note that Micron should trade higher following

analyst meeting on Thursday in which the company "provided a positive read through on several fronts." Specifically, Intel is guiding for a continued stabilization in PC sales through 2015. The company's guidance contradicts the analysts previous expectation of a 3 percent decline in 2015. "This should help temper concerns over recent weakness in DRAM pricing," the analysts wrote while also pointing out that Intel's NAND expected revenue of above $2 billion represents an all-time high. Looking forward, the analysts are modeling average selling prices of DRAM to rise 2 percent in November and a decline of 3 percent in February. Shares of Micron are Buy rated with a $40 price target.