Rosenblatt Raises Estimates for Micron Technology, Inc. (MU)

Rosenblatt Securities analyst Hans Mosesmann is out with a bullish note on shares of Micron Technology, Inc.(NASDAQ:MU), after the memory chip giant raised its February quarter guidance, noting that the increase in expectation is driven by mix, cost improvements, and pricing. Management expects healthy overall demand and positive operational and market momentum to continue into F3Q17.

Mosesmann noted, “We continue to view the memory industry in the early innings in this cycle, with Micron technologically and operationally in the best shape in its history, and in the context of a benign oligopoly. We understand there is some angst regarding the potential sale of the Toshiba NAND assets to China however we doubt seriously this scenario given the strategic JV with U.S. based WDC (SanDisk) and the sensitivity of NAND technology in next generation cloud storage.”

“Our new fiscal year 8/17 sales and EPS estimates are $18.1 billion and $3.11, up from $17.6 billion and $2.45 respectively. Our new fiscal year 8/18 sales and EPS estimates are $20.0 billion and $3.93, up from $19.3 billion and $3.04 respectively,” the analyst added

Mosesmann reiterates a Buy rating on Micron shares, with a price target of $40, which represents a potential upside of 59% from where the stock is currently trading.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Hans Mosesmann has a yearly average return of 11.9% and a 56% success rate. Mosesmann has a 9.6% average return when recommending MU, and is ranked #364 out of 4513 analysts.

As of this writing, all the 22 analysts polled by TipRanks (in the past 3 months), rate Micron stock a Buy. With a return potential of 17%, the stock’s consensus target price stands at $29.61.

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