The firm’s analyst believes that Micron has lower than expected inventories
Micron Technology, Inc. (NASDAQ:MU) has received a price target raise at the hands of analyst Mike Burton of Brean Capital, who believes that the stock is performing very nicely and there is certainly a lot of upside potential. The analyst performed some channel checks and believes that the current level of inventories is far lower than the expectations.
According to Mr. Burton this serves as a positive surprise and the company will be able to ramp the production ahead of the holiday season. Micron will announce its quarterly earnings report on December 21.
Mr. Burton also believes that the company is very likely to produce strong results. The guidance numbers provided by the company will once again prove to be conservative as they have been for the past few quarters.
The industry as a whole is in a very strong position, owing to sustained high level of demand in the PC market and other related areas. Micron has a significant upside potential both in terms of revenue and earnings for the next quarter.
Micron pre-announced the quarterly results for the quarter a week ago and they were ahead of consensus on almost all ends. The analyst has opined that the strength in DRAM pricing is likely to be sustained in near future and will support positive ASP trends for the company. The analyst personally visited the Asian markets and believes that DRAM and NAND trends are expected to accelerate during the next year.
Brean Capital reaffirmed its buy rating and raised the price target to $25 from $23. The analysts’ opinions for the company include eight buy, ten outperform, four hold and four underperform ratings. The stock currently trades at a price of $18.51.