Deutsche Bank Cuts Estimates for Micron Technology, Inc. (MU), But Remains Positive Ahead of Analyst Day
Deutsche Bank analyst Sidney Ho weighed in today with a mixed report on Micron Technology, Inc. (NASDAQ:MU), ahead of Micron’s 2015 Summer Analyst Conference on Friday, Aug 14 in Fairmont, San Francisco.
In her research note, Ho stated, “Ahead of MU’s analyst meeting next week, we are trimming our estimates to reflect lower PC/smartphone demand and slower cost improvement over the next couple of quarters. Despite lower estimates, we remain positive on MU shares as we believe a stabilization of the DRAM market and MU’s solid 3D NAND ramp plans should support an annualized EPS of $3.00+ in 2H16. Trading at ~7.5x our CY16E EPS, we believe risk-reward is favorable.”
The analyst rates Micron shares a Buy with a price target of $28, which represents a potential upside of 46% from where the stock is currently trading.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sidney Ho has a total average return of -9.7% and a 35.0% success rate. Ho has a -15.5% average return when recommending MU, and is ranked #3568 out of 3724 analysts.
Drexel Hamilton analyst Richard Whittington also weighed in recently, upgrading Micron stock to a Buy from a Hold rating and raising the price target from $19 to $25, writing that the recent production plans with Intel for a new, non-volatile memory chip “places a floor under the MU shares.”
Hamilton calls the new memory chip a “functional cross between NAND and DRAM” and believes it can “materially” increase data center performance in the near-term and eventually replace NAND entirely in the longer-term.
Out of the 29 analysts polled by TipRanks, 22 rate Micron Technology stock a Buy, 6 rate the stock a Hold and 1 recommends Sell. With a return potential of 100.4%, the stock’s consensus target price stands at $38.35.