Wedbush analyst Betsy Van Hees weighed in today with a favorable report on Micron Technology, Inc. (NASDAQ:MU) after hosting an investor meeting yesterday with the VP of MU’s Storage Business Unit Darren Thomas and VP of IR Kipp Bedard on the second day 2 of the 13th Semi-Annual Bus Tour in Silicon Valley. The meeting focused on the company’s progress in the enterprise NAND market, expectations for 3D NAND cost structure, and benefits from strategic partnerships. The analyst maintained an Outperform rating on the stock with a price target of $31. Shares of MU are currently trading at $25.18, down $0.01, or -0.04%.
Hees observed, “While we maintain our OUTPERFORM as we continue to believe it is too early to make the call that DRAM supply will exceed demand in 2H:15, NT PC DRAM continues to be weak impacted by: 1) weak demand, 2) elevated PC OEM inventory levels, and 3) pricing pressure. We expect shares of MU to remain under pressure until PC DRAM ASPs stabilize, PC OEM inventories normalize, and visibility on 2H PC DRAM demand improves. Our 12-month PT of $31 (unchanged) is based upon about 10x our CY:15 pro forma EPS estimate of $3.12.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Betsy Van Hees has a total average return of 19.2% and a 55.8% success rate. Hees has a 60.2% average return when recommending MU, and is ranked #234 out of 3621 analysts.
Out of the 29 analysts polled by TipRanks, 22 rate Micron Technology stock a Buy, 6 rate the stock a Hold, and 1 recommends a Sell. With a return potential of 46.8%, the stock’s consensus target price stands at $36.98.