real-time news and commentary for investors
Monday, Sep 23
Micron receives another PT hike as DRAM prices soar
- Wedbush's Betsy Van Hees, who is lifting her Micron (MU -1.6%) PT to $23 from $16: "While checks indicate demand for handsets, PCs and tablets have modestly improved since Aug, any prior concerns we had for near-term memory supply outstripping demand have been eradicated following the fire at SK Hynix's (HXSCL.OB) DRAM fab in China..."
- RBC upped its Micron PT two weeks ago on account of the fire, noting it puts 30% SK Hynix's 2013 DRAM production "at immediate risk." Susquehanna upgraded shares to Neutral, estimating the fire will lower OEM/channel DRAM inventories by 2-3 weeks. Hynix expects to be back to full capacity somewhere in November.
- DRAM prices, which were already up strongly in 2013 going into September, have been soaring since the fire broke out on Sep. 4; DRAMeXchange estimates spot prices for 2Gb DDR3 chips are up 42%, benefiting both Micron and Samsung (SSNLF.PK, SSNGY.OB).
- SanDisk (SNDK -0.5%) benefits to the extent tight DRAM capacity/surging prices lead manufacturers to reallocate NAND production lines to DRAM.
- Micron is selling off today, but remains up 12% since news of the fire first broke.