Jefferies Positive on Micron Technology (MU) as Wafer Prices Stabilize
Analysts at Jefferies are positive for Micron Technology (NASDAQ: MU), as they see stabilization in DRAM prices and favorable conditions for NAND. They think this will lead to margin expansion.
"NAND Contract Prices increased by 17% QTD, and we expect prices to remain favorable unless substantial new wafer capacity is added. NAND Spot Prices increased by 33% QTD," noted analyst Sundeep Bajikar.
"DRAM Spot Prices shot up 21% in the last two weeks, and are now tracking up ~10% YTD. Our checks indicate Server and Mobile DRAM demand remains robust, while PC-DRAM demand is weak. We have a positive view of DRAM supply fundamentals over the next 6-to-12 months, and expect DRAM prices to improve structurally" added Bajikar
Jefferies has a Buy rating on Micron Technology (NASDAQ: MU) with a price target of $10.00.
For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.
Shares of Micron Technology closed at $6.70 yesterday, with a 52 week range of $5.16-$9.16.
"NAND Contract Prices increased by 17% QTD, and we expect prices to remain favorable unless substantial new wafer capacity is added. NAND Spot Prices increased by 33% QTD," noted analyst Sundeep Bajikar.
"DRAM Spot Prices shot up 21% in the last two weeks, and are now tracking up ~10% YTD. Our checks indicate Server and Mobile DRAM demand remains robust, while PC-DRAM demand is weak. We have a positive view of DRAM supply fundamentals over the next 6-to-12 months, and expect DRAM prices to improve structurally" added Bajikar
Jefferies has a Buy rating on Micron Technology (NASDAQ: MU) with a price target of $10.00.
For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.
Shares of Micron Technology closed at $6.70 yesterday, with a 52 week range of $5.16-$9.16.