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Morgan Stanley 'Remains Bullish' On Micron After It Stands Out At Flash Memory Summit

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Morgan Stanley 'Remains Bullish' On Micron After It Stands Out At Flash Memory Summit

Morgan Stanley analyst Joseph Moore recently attended the 2017 Flash Memory Summit and took place in company events, panel discussions and private events with industry insiders. Following the summit, Moore is even more convinced of Morgan Stanley’s bullish thesis on Micron Technology, Inc. (NASDAQ: MU).

According to Moore, 3D Scaling, QLC technology in NAND and the NVM Express were key themes from this year’s event.

In the memory space, Micron management expressed confidence in the company’s 64-layer 3D NAND technology after Micron launched its first-generation 3D NAND technology just last year. Moore sees no major hurdles for Micron in ramping its 3D NAND business in the near-term. In addition, Morgan Stanley isn’t expecting any DRAM pricing weakness throughout the remainder of 2017. If anything, the firm is predicting seasonal demand growth and relatively low customer inventories, a recipe for profitable prices.

“We see significant improvement in commodity prices driven by higher capital intensity, and recovery in company-specific execution,” Moore wrote.

Related Link: Analyst: Nvidia's Sell-Off Was Overdone, Time To Establish Or Add To A Position

He said memory stocks have settled into a very well-defined earnings cycle pattern, and Morgan Stanley believes the current quarter will likely demonstrate further EPS recovery from the recent bottom in that cycle. As the recovery continues, the firm expects a return to average run rates by this time next year.

In addition to Micron, Morgan Stanley also remains bullish on Lam Research Corporation (NASDAQ: LRCX) and Applied Materials, Inc. (NASDAQ: AMAT). Morgan Stanley has Overweight ratings on Micron, Lam Research and Applied Materials with price targets of $36, $176 and $52, respectively.

Latest Ratings for MU

DateFirmActionFromTo
Jul 2019UpgradesUnderweightEqual-Weight
Jul 2019UpgradesNeutralBuy
Jul 2019MaintainsOverweight

View More Analyst Ratings for MU
View the Latest Analyst Ratings

Posted-In: Joseph Moore Morgan StanleyAnalyst Color Long Ideas Price Target Analyst Ratings Tech Trading Ideas Best of Benzinga

 

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