Needham Maintains Strong Buy on Micron Technology, Inc. on Attractive Valuation

In a research report issued today, Needham analyst Rajvindra Gill maintained a Buy rating on Micron Technology, Inc. (NASDAQ:MU) with a $60 price target. However, the analyst lowered his near-term estimates to account for lower PC DRAM gross margins, given the slew of negative PC data points. Shares of Micron closed today at $27.66, down $0.84 or 2.96 percent.

Gill noted, “We believe the stock is oversold and at current price levels represents an attractive entry point. We expect gross margins will improve markedly in the C2H15/ CY16 driven by higher TLC NAND mix, higher mobile DRAM pricing, DDR4 transition, new Inotera agreement positively affecting GMs in 2016 and tight DRAM supply. As such, our FY16 Non-GAAP EPS of $4.75 and our $60 PT remain unchanged.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Rajvindra Gill has a total average return of 21.1% and a 59.7% success rate. Gill has a 4.6% average return when recommending MU, and is ranked #60 out of 3516 analysts.


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