Market Overview

How The Toshiba-Western Digital Beef Could Be A Boon For Micron Technology

How The Toshiba-Western Digital Beef Could Be A Boon For Micron Technology

Micron Technology, Inc. (NASDAQ: MU) 4-percent decline Friday morning isn't deterring analysts at Pacific Crest from calling for the stock to double in value moving forward.

Pacific Crest's Weston Twigg commented in a research report after Micron's earnings report that the company has shown it is not only improving its technology but benefiting from strong memory pricing which supports higher margins and earnings per share growth.

Analyst's Take

Micron's stock has already more than doubled since summer of 2016 and it is possible the stock can double in value moving forward, especially if the Toshiba and Western Digital dispute (Toshiba Corp (USA) (OTC: TOSYY), Western Digital Corp (NASDAQ: WDC)) results in NAND supply constraints, the analyst added.

Should overall demand for Micron's products hold up, the company could generate an EPS of more than $6 next year and a 10x multiple would value the stock north of $60 per share. However, this extreme bull case scenario may not play out as the analyst expects memory pricing to start declining in both DRAM and NAND, which will impact margins.

Nevertheless, a "more realistic" scenario implies upside in Micron's stock to $40 per share with potential upside coming from the Toshiba–Western Digital dispute. Downside to the stock could also happen if Samsung Electronic (OTC: SSNLF) notably increases its DRAM capacity.

As such, the analyst is recommending investors "buy opportunistically in this market environment." The stock is currently rated at Sector Weight,
with no assigned price target.

At last check, shares of Micron were down 4.59 percent at $30.02.

Related Links:

Pricing Drives Margin In Micron's May Quarter

22 Stocks Moving In Friday's Pre-Market Session
Image Credit: By The original uploader was Prattflora at Chinese Wikipedia - Transferred from zh.wikipedia to Commons by Shizhao using CommonsHelper., CC BY-SA 2.0, via Wikimedia Commons

Latest Ratings for MU

Sep 2019MaintainsOutperform
Sep 2019UpgradesNeutralBuy
Sep 2019MaintainsOverweight

View More Analyst Ratings for MU
View the Latest Analyst Ratings

Posted-In: DRAM MicronAnalyst Color News Reiteration Analyst Ratings Movers Tech Best of Benzinga


Related Articles (MU + SSNLF)

View Comments and Join the Discussion!

Latest Ratings

HSKACanaccord GenuityMaintains75.0
AVGOMorgan StanleyMaintains265.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Hain Celestial Has An Activist: How The Narrative Changes Now

American Outdoor Brands: A Weak Outlook Shoots Down A Good Quarter