MKM Pounds the Table on Micron Technology, Inc. (MU)

MKM analyst Ian Ing was out pounding the table on shares of MKM with Ing reiterating a Buy rating, while raising the price target to $21 (from $19), which represents a potential upside of 35% from where the stock is currently trading.

Ing wrote, “We are raising our EPS estimates to Street-high for FY16 (August) and well into the upper half of consensus in FY17. Sell-side estimates remain too low, in our view, and need to rise closer to improving Buy-side sentiment. We see both concrete (spot, contract) and more anecdotal evidence (one quarter-length contract requests) that pricing is rising as the supply-demand balance is increasingly achieved.”

The analyst continued, “MU is missing out on some of the rapidly improving NAND fundamentals (spot up 2% month to date), given their relatively late ramp of gen 1 3-D NAND. However, >50% bit output crossover is expected this fall and we think the target is easily achievable and likely beatable. A period of natural 3-D NAND over-shipment (industry up mid-30s to low-40s) should lie ahead as was seen with the recent 20-nm DRAM transition.”

According to TipRanks, top five-star analyst Ian Ing has achieved a ranking of #56 out of 4,120 analysts. Ing upholds a high 75% success rate and averages 21.3% in his yearly returns. When recommending MU, Ing earns 15.7% in average profits on the stock.

TipRanks analytics exhibit Micron as a Buy. Based on 23 analysts polled in the last 3 months, 18 rate a Buy on MU, 3 maintain a Hold, while 2 issue a Sell. The average price target is $16.13, which represents a 3% increase from where the shares last closed.

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