Technology development for future iterations of 3D XPoint will be done independently by the two companies to optimize the technology for their own product and business needs.
RBC Capital analyst Amit Daryanani commented, “Based on our discussion with the company, ~100bps headwind to GM from 3D Xpoint will persist over the next few quarters as it’s related to underutilization at IMFT fab (production expected to start in ~3-4 quarters). Also, based on our prior discussions, ending the JV is likely an indication that MU is ROI driven for cash outlays, be that for a JV or M&A. Net net, We believe MU remains one of the more attractive names in our coverage as we see potential for sustained beats/raises that should get augmented by a consistent buyback program as we get into FY19. Near term, investor concerns around China and NAND supply seem overblown and neither one should impact MU’s standalone performance going forward.”
As such, Daryanani reiterates an Outperform rating on Micron shares, with a price target of $83, which implies an upside of 45% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Amit Daryanani has a yearly average return of 25.6% and a 81% success rate. Daryanani has a 0.4% average return when recommending MU, and is ranked #26 out of 4843 analysts.
If we step back and look at the bigger picture, we can see that Wall Street loves the chip giant, scoring one of the most bullish consensus ratings – Strong Buy. Based on 22 analysts polled in the last 3 months, 18 rate a Buy on Micron stock while 4 recommend a Hold. The 12-month average price target stands at $83.95, marking a 47% upside from where the stock is currently trading.