Boosts Micron Technology (MU) Price Target to $64.00

Marco Green
March 25, 2019

US chipmaker Micron Technology Inc on Wednesday said it sees a recovery in the memory chip market coming and reported a quarterly profit that beat estimates as cost controls helped offset falling demand and prices, sending its shares up almost 5 percent.

Charles King of Pund-IT Inc. said Micron's main problem right now is that the memory chip space is in the midst of a cycle where oversupply is causing suppliers to reduce prices in order to get excess product off the shelves.

Among 12 analysts covering Micron Technology (NASDAQ:MU), 7 have Buy rating, 1 Sell and 4 Hold. Valueworks LLC bought a new stake in shares of Micron Technology in the fourth quarter worth approximately $1,214,000. Piper Jaffray Companies reiterated a "neutral" rating and set a $40.00 price objective (up from $36.00) on shares of Micron Technology in a research note on Thursday.

Micron said on Wednesday it saw recovery in the memory chip market, after reporting quarterly profit that beat analyst estimates as cost control helped offset falling demand and prices. BidaskClub cut Micron Technology from a hold rating to a sell rating in a research note on Thursday, March 7th.

Due to large amounts of overstock, Micron's average selling price (ASP) of its products dropped by 20 percent quarter over quarter. The firm presently has an "outperform" rating on the semiconductor manufacturer's stock.

Micron projected profit of 85 cents a share, plus or minus 10 cents, in the period ending in May. MUFG Securities EMEA plc boosted its holdings in shares of Micron Technology by 38.7% in the fourth quarter. The firm has a market cap of $44.99 billion, a P/E ratio of 3.58, a P/E/G ratio of 0.85 and a beta of 1.87. Micron Technology has $75 highest and $33 lowest target.

The company has a current ratio of 2.90, a quick ratio of 2.15 and a debt-to-equity ratio of 0.11. Lavaca Capital LLC acquired a new position in Micron Technology in the fourth quarter valued at about $29,000. The semiconductor manufacturer reported $1.71 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.67 by $0.04. Micron Technology had a return on equity of 41.60% and a net margin of 43.56%. Finally, American International Group Inc. raised its stake in shares of Micron Technology by 5.0% during the third quarter.

Hedge funds have recently added to or reduced their stakes in the stock.

Micron's NAND revenues slipped 18% sequentially and 2% on year to account for 30% of company revenues in the fiscal second-quarter 2019. During the same quarter in the previous year, the company posted $2.82 EPS. JNBA Financial Advisors acquired a new position in Micron Technology in the fourth quarter valued at about $28,000.

WARNING: "Micron Technology (MU) Shares Gap Up After Analyst Upgrade" was first reported by Highlight Press and is the sole property of of Highlight Press.

Micron Technology, Inc manufactures and sells memory and storage solutions worldwide. The firm operates through four divisions: Compute and Networking Business Unit, Storage Business Unit, Mobile Business Unit, and Embedded Business Unit. (NASDAQ:MU) were released by: Investorplace.com and their article: "The 3D XPoint Could Be a True Game Changer for MU Stock - Investorplace.com" published on February 22, 2019 as well as Benzinga.com's news article titled: "Barron's Picks And Pans: Apple (NASDAQ:AAPL), Altria (NYSE:MO), Micron Technology (NASDAQ:MU), Nvidia (NASDAQ:NVDA) And More - Benzinga" with publication date: February 23, 2019.

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