Analysts Offer Differing Viewpoints on Micron Technology, Inc. Following Summer Analyst Conference
In a research report published Monday, Deutsche Bank analyst Ross Seymore reiterated a Buy rating on shares of Micron Technology, Inc. (NASDAQ:MU) with a $28 price target, after the company hosted its summer analyst conference in San Francisco on Friday.
Seymore noted, “The key message is that while near term PC market conditions remain challenging, the company is optimistic that memory business cycles will be more muted than in the past given a consolidated supplier base, low supply growth and diversifying demand. MU is focused not only on manufacturing and technology, but also on value-added solutions/technologies and customer/partner relationships, which should allow the company to move from a demand fulfillment business to a demand creation business. MU believes FY15/F1H16 will be its investment period that should reap strong growth in F2H16/FY17.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ross Seymore has a total average return of 19.8% and a 59.2% success rate. Seymore has a -10.7% average return when recommending MU, and is ranked #124 out of 3737 analysts.
Wedbush analyst Betsy Van Hees took the other route, downgrading MU stock from Outperform to Neutral and reducing the price target to $19 (from $26), following the conference.
Van Hees noted, “We downgrade Micron to a NEUTRAL and reduce our PT as we now expect, following our industry checks at the 2015 Flash Memory Summit and MU’s Analyst Day, that DRAM supply/demand likely won’t improve and cost downs won’t outpace ASP declines until mid-2016 vs. our prior view of MU’s FQ1.”
Analyst Betsy Van Hees has a total average return of 13% and a 52.3% success rate. Hees has a 44% average return when recommending MU, and is ranked #389 out of 3777 analysts.