Rosenblatt Sets Expectations On Micron Technology, Inc. (MU) Ahead Of Earnings

With Micron Technology, Inc. (NASDAQ:MU) preparing to release its fiscal second-quarter results this Thursday, March 23, Rosenblatt analyst Hans Mosesmann weighed in today with his expectations. Micron shares are currently trading at $26.19, up $0.39 or 1.50%.

Overall, the analyst expects an inline print with a guide characterized by continued tailwinds: benign supply/demand, ASP strength, diversification of end demand, and the secular moderation of memory “cycles.”

In DRAM, Mosesmann expects management to discuss a successful 1Xnm ramp for 2017 and development of 1Ynm. In NAND, the analyst expects Micron to continue to ramp TLC and 3D Gen2 in 2017. In 3D XPoint that can be used in both SSDs (like NAND), and main memory (like DRAM) the analyst expects continued commercial ramp in 2018. “We are more cautious on the use of 3D XPoint in main memory mainly due to infrastructure issues, however over time it could be disruptive should the density advantages vs. DRAM pan out,” Mosesmann noted.

As such, Mosesmann reiterates a Buy rating on Micron shares, while raising the price target to $40.00 (from $34.00), which represents a potential upside of 52% 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 11.8% and a 56% success rate. Mosesmann has a 9.3% average return when recommending MU, and is ranked #388 out of 4560 analysts.

Out of the 32 analysts polled in the past 12 months, 29 rate Micron Technology stock a Buy, while 3 rate the stock a Hold. With a downside potential of 0.7%, the stock’s consensus target price stands at $26.13.


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