08-25-2017, 10:25 PM
Micron Technology, Inc. (NASDAQ:MU) DRAM pricing guide for the third quarter is looking more robust than Baird analyst Tristan Gerra had anticipated, and with DRAM trends for the back half of the year tracking higher than previous forecasts, the stock’s value is appealing. As such, the analyst reiterates an Outperform rating on shares of MU with a $48 price target, which represents a 56% increase from where the stock is currently trading. (To watch Gerra’s track record, click here) Gerra notes, “DRAM inventories at both PC and data center OEMs remain below normal levels, with continued inventory replenishments now expected through 1H18. – We previously thought these replenishments would be completed by end of C3Q17.” Additionally, with initial DRAM supply bit growth guide for next year standing at roughly 20%, the analyst believes, “Rexchip’s 1xnm ramp could help Micron gain DRAM market share in 2018, in our view. – New hardware features in PCs could potentially prevent units from declining next year, post an expected low-single-digit growth this year.
Micron Technology, Inc. (MU) DRAM 3Q Pricing Guide Soaring Beyond Expectation - Smarter Analyst