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.

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