Needham Keeps Their Buy Rating on Micron

By Jason Carr

Needham analyst Rajvindra Gill reiterated a Buy rating on Micron (NASDAQ: MU) today and set a price target of $50. The company’s shares opened today at $32.84, close to its 52-week high of $32.86.

Gill commented:

“Yesterday, we hosted an investor dinner with Micron’s CFO Ernie Maddock and IR Shanye Hudson in New York. The environment has changed – memory is becoming less of a commodity but rather an integral part of the data economy. On the DRAM side, we see strength across the board with servers and graphics driving growth. Overlooked, we think Cost/Bit is the missing piece of the NAND puzzle. While we believe pricing to remain favorable, 3D NAND technology could reduce cost per bit by 70% over the next 3-years – lifting NAND margins possibly to 50%+ over time. Net, we believe $5.00 EPS is achievable in FY18; we could see multiple expansion to 12-15x P/E if GMs trend higher.”

According to TipRanks.com, Gill is a top 100 analyst with an average return of 22.3% and a 70.2% success rate. Gill covers the Technology sector, focusing on stocks such as Everspin Technologies Inc, Adesto Technologies Corp, and Silicon Laboratories.

Currently, the analyst consensus on Micron is Strong Buy and the average price target is $38.53, representing a 17.3% upside.

In a report issued on May 30, J.P. Morgan also reiterated a Buy rating on the stock with a $38 price target.

Based on Micron’s latest earnings report for the quarter ending February 28, the company posted quarterly revenue of $4.65 billion and quarterly net profit of $894 million. In comparison, last year the company earned revenue of $2.9 billion and had a GAAP net loss of $215 million.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. Last month, Brian Shirley, the VP Memory Tech. & Solutions of MU sold 50,581 shares for a total of $1,455,215.

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Micron Technology, Inc. engages in the designing, and building memory and semiconductor technologies. It operates through the following segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, Embedded Business Unit. The Compute and Networking Business Unit segment includes memory products sold into compute, networking, graphics, and cloud server markets. The Storage Business Unit segment are the products sold into enterprise, client, cloud, and removable storage. The Mobile Business Unit segment includes memory products sold into smart phone, tablet, and other mobile-device markets. The Embedded Business Unit segment is comprised of memory products sold into automotive, industrial, connected home, and consumer electronics markets. The company was founded by Ward D. Parkinson, Joseph L. Parkinson, Dennis Wilson, and Doug Pitman in October 1978 and is headquartered in Boise, ID.