Micron Technology (MU) Lifted to $43 at Piper Jaffray; More Growth Ahead
Piper Jaffray analyst Ruben Roy reiterated an Overweight rating on Micron Technology (NASDAQ: MU) and boosted his price target to $43.00 (from $41.00) following strong earnings.
Roy commented, "We reiterate our Overweight rating on MU and tick up our PT to $43 ($41 previously) following strong F4Q14 earnings and a continued strong outlook. MU beat F4Q14 estimates on revenues of $4.23bn (consensus: $4.16bn) and Non-GAAP EPS of $0.82 (consensus: $0.81). MU continues to see steady demand in PCs, consistent with recent Intel commentary. We believe that enterprise and mobile continue to be areas of growth for both NAND and DRAM respectively. We also remain optimistic on growing DRAM usage in Enterprise. Looking ahead, we believe that margins continue to move up into FY16 as greater mix of SSDs, transition to 16nm and TLC memory and the move to 3D NAND start to yield better margin structure while DDR4 DRAM provides a tailwind for ASPs. Demand remains strong for both DRAM and NAND while steady supply positions MU well for solid growth."
The firm lifted FY 2015 EPS from $3.15 to $3.16 and set FY 2016 EPS at $3.48.
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Shares of Micron Technology closed at $31.70 yesterday.