After Robert W. Baird and Deutsche Bank gave Micron (NASDAQ: MU) a Buy rating last month, the company received another Buy, this time from Needham. Analyst Rajvindra Gill maintained a Buy rating on Micron today and set a price target of $80. The company’s shares closed yesterday at $46.06.
Gill said:
“After posting a stellar F4Q18, MU guided gross margins to decline Q/Q (-50-100bps impx.) due to the Chinese tariffs and some inventory adjustments at a specific customer. We believe it will take 1-3 qrts for MU to resolve the issue. While disappointing, this is largely out of the hands of the company and we would highlight a projected y-y GM increase of 160-460bps. We see healthy demand/supply conditions for DRAM with bit growth ~20% and demand drivers growing at least 30%. On the NAND side, cost reductions are taking hold and believe D>S. We are lowering our PT to $80 but we believe in the structural changes occurring in the memory industry and are encouraged by MU’s net cash and de-leveraging campaign.”
According to TipRanks.com, Gill is a top 100 analyst with an average return of 18.8% and a 62.0% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Smart Global Holdings Inc, Everspin Technologies Inc, and Adesto Technologies Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Micron with a $72.58 average price target, implying a 57.6% upside from current levels. In a report issued on September 6, Deutsche Bank also maintained a Buy rating on the stock with a $80 price target.
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The company has a one-year high of $64.66 and a one-year low of $34.09. Currently, Micron has an average volume of 37.35M.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock.
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Micron Technology, Inc. engages in the designs and building of semiconductor memory and storage technologies. It operates through the following segments: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit.
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