Micron Technology Inc.NASDAQ
Micron Technology: Given Future Potential, Patience Is A Virtue
Smart Value Investor • 69 Comments
Smart Value Investor • 69 Comments
Wed, Dec. 7, 8:04 AM
- Fundamentals in the DRAM industry are "rapidly improving" thanks to lower supply combined with stable to improving demand, says Citi, initiating coverage on Micron Technology (NASDAQ:MU) with a Buy rating and Street-high $30 price target (57% upside).
- Shares +3.1% premarket
Fri, Dec. 2, 12:13 PM
- Analyst Vijay Rakesh notes fundamentals across the subset remain in place and despite coming up on a seasonally weaker March quarter, sees recent downturn resulting in an acquiring opportunity.
- Highlights a semiconductor group trading at 2013 levels and sees forthcoming catalysts stemming from robust earnings growth, cost synergies, positive industrial, automotive, defense and aerospace, and further M&A consequent expected regulatory climate improvements.
- Recommends Intel (INTC +1%), Qualcomm (QCOM +2.4%), Micron Technology (MU +3.1%), Broadcom (AVGO +0.7%), ON Semiconductor (ON +0.7%), Cypress Semiconductor (CY +0.6%) and Microsemi (MSCC +0.6%).
Thu, Dec. 1, 10:55 AM
- Notable early (2%+ losses): Alphabet (GOOGL -2.25%, GOOG, -2%) Facebook (FB -3.4%), Twitter (TWTR -3.9%), Oracle (ORCL -3.3%), Salesforce (CRM -4.2%), VMware (VMW -3.5%), Alibaba (BABA -2.7%)
- 5%+: Qualcomm (QCOM -4.9%), Nvidia (NVDA -7%), Advanced Micro Devices (AMD -7.1%), Micron Technology (MU -5.5%)
- 8%+: Cirrus Logic (CRUS -8.8%), Gigamon (GIMO -9.5%)
Wed, Nov. 30, 12:01 PM
- Despite revising Q1 expectations for revenue at $3.975B (+/- $50M) [$3.55B-$3.85B prior, consensus $3.71B] and EPS of $0.28 (+/- $0.02) [$0.13-$0.21 prior, consensus $0.19], Micron Technology (NASDAQ:MU) shares are just slightly higher (+1.16%) to $19.64 on the day and relatively unfazed (+0.15%) on the week-term.
- While some analysts move targets higher on the development and other company-issued commentary (Instinet's Romit Shah from $23 to $25 and Susquehanna's Mehdi Hosseini from $21 to $23, restating respective Buy and Positive ratings), not all coverage is altered. Pacific Crest Securities remains Sector weight while Rajvindra Gill at Needham & Co. reissues an Underweight position on unfavorable risk/reward with peak multiples, high debt levels and a lacking cost-competitive stance in 3D NAND.
Fri, Nov. 18, 7:54 AM
- In response to reports about talks between Changjiang Storage and Micron (NASDAQ:MU) on technology licensing and mass production of NAND flash memory, the Tsinghua unit made the following statement:
- Up to now, Changjiang Storage has never held negotiations with Micron and any other company on any topic. Vice Chairman Ding Wenwu has also never made any comment or released any information on this.
- MU -2% premarket
Thu, Nov. 17, 12:18 PM
- In no surprise, the list is dominated by the ripping financial sector:
- Allstate (ALL +1.4%)
- Ameriprise (AMP +0.2%)
- TD Ameritrade (AMTD +1.6%)
- BB&T (BBT +2.1%)
- Citigroup (C +2.4%)
- Citizens Financial (CFG +2%)
- Comerica (CMA +1.5%)
- CNA Financial (CNA +0.6%)
- Loews Corp. (L +0.9%)
- Marsh & McLennan (MMC +1.9%)
- PNC Financial (PNC +2.6%)
- Royal Bank of Canada (RY +0.7%)
- U.S. Bancorp (USB +1.9%)
- Aetna (AET +1.5%)
- Best Buy (BBY +10.4%)
- CBS (CBS +0.6%)
- Celanese (CE +0.1%)
- Comcast (CMCSA +1.5%)
- Dell Technologies (DVMT +1.1%)
- The Gap (GPS +0.4%)
- Humana (HUM +1.4%)
- KLA-Tencor (KLAC +2.7%)
- Liberty Media (LMCA +1.6%)
- Lam Research (LRCX +1.9%)
- Micron (MU +5.3%)
- Nvidia (NVDA +2.7%)
- Rockwell (ROK -0.5%)
- Teck Resources (TCK +0.5%)
- Texas Instruments (TXN +1.1%)
- New lows:
- Novo Nordisk (NVO +0.3%)
Thu, Nov. 3, 3:50 PM
- Analyst Vijay Rakesh outlines rising DRAM pricing throughout October and into November. Further notes: "Since MU reported in October, DRAM spot pricing is up 14%. Also, Inotera guided to accelerating DRAM revenue up 20-25% q/q into DecQ. We believe an accelerating MU topline should remain a tailwind into the FebQ, combined with Micron / Inotera combination (expected 1H-Dec close)."
- Buy rating and $22 (current price $16.60) reiterated, in line with a broad range of encouraging Micron (MU -0.6%) coverage across the sell side.
Fri, Oct. 14, 4:47 AM
- Tech giants including AMD, Dell/EMC, Google (GOOG, GOOGL), HPE, IBM, Mellanox (NASDAQ:MLNX), Micron (NASDAQ:MU), Nvidia (NASDAQ:NVDA) and Xilinx (NASDAQ:XLNX) have linked up to give Intel (NASDAQ:INTC) a good kick in the datacenters.
- The group has come up with an open specification, dubbed OpenCAPI, that can boost server performance by up to 10x.
- Effectively they are moving away from PCIe, the current industry standard, to something that is both more open and vastly more powerful.
Wed, Oct. 5, 10:14 AM
- Remains Neutral, though moves from $18 to $16 (current price $17.67).
- Accounting changes affecting Micron Technology's (MU +0.4%) Q1 2017 EPS guidance estimates, causing the provided $0.13-$0.21 range to appear stronger than consensus, are considered in the call, with analysts at Stifel and Barclays (Overweight, $23 target) also noting the adjustment.
- Goldman Sachs' Mark Delaney: "While we believe DRAM market conditions could remain solid in the coming quarters, allowing Micron to achieve EPS near the higher-end of its guidance for 1QFY17, its ability to translate improved industry prices into better EPS and positive FCF continues to trail peers.”
- Shares in Micron Technology were volatile immediately on earnings going live, though are presently more stabilized, with an approximate 1% decline since yesterday's close.
- Q4 overview
- Update (10:34AM ET): Morgan Stanley maintains Overweight rating and $20 target, considering the quarter a "modest setback."
Tue, Oct. 4, 5:37 PM
Tue, Oct. 4, 4:21 PM
- Volatile after-hours trading activity in Micron Technology (NASDAQ:MU) as Q4 revenue ($3.22B) increased 11% Q/Q, though declined by that same rate Y/Y.
- Net loss attributable to shareholders of $56M vs. net loss of $79M Q/Q and net income of $399M Y/Y.
- DRAM and NAND sales volumes increased 20% and 12% Q/Q, respectively. DRAM average selling prices decreased 6% while NAND average selling prices remained unchanged over the same period.
- Micron Technology CEO Mark Durcan: "We are seeing improving market conditions in terms of both slowing supply growth and improving demand across a number of key segments. In addition, we continue to execute on our key initiatives related to the deployment of advanced technologies and products to advantage our customers."
- Projects Q1 2017 revenue of $3.55B-$3.85B, gross margin in the 23%-25.5% range, operating expenses of $600M-$650M, operating income of $245M-$330M and EPS of $0.13-$0.21. Further expects $5B of net capital expenditures in FY 2017 (40%-50% DRAM, 30%-40% non-volatile memory, 15%-25% technology/product enablement).
- Shares have gone negative, positive and presently, back lower by 2% since the report broke.
- Conference call
- Press release
Tue, Oct. 4, 4:07 PM
Mon, Oct. 3, 5:35 PM
Tue, Aug. 30, 10:16 AM
- Target to $20 up from $18 (current price $16.98).
- While remaining positive overall on Micron Technology (MU -0.2%), analyst Joseph Moore does note some possible upcoming supply volatility.
- Micron received upgraded targets yesterday at Deutsche Bank and Stifel Nicolaus, and gained traction on comments by HP's CEO last week citing component shortages.
Mon, Aug. 29, 8:22 AM
- A nice move continues for Micron Technology (NASDAQ:MU) following HP's results late last week, as Deutsche raises its price target to $20 from $16, and Stifel to $18 from $15.
- "Amid a recovery in DRAM, we are taking an in-depth look at normalized operating margin, which strongly correlates with price-to-book," says Deutsche's Romit Shah. "Our analysis indicates fair value of $20 per share based on operating margin of 10%."
- Shares +2.1% premarket to $16.85.
Thu, Aug. 25, 12:45 PM
- HP reported Q3 results yesterday and on its earnings call, CEO Dion Weisler noted "some shortages, particularly around LCDs, DRAM and Flash memory."
- Susquehanna analyst Mehdi Hosseini notes potential resulting favorability for Micron Technology (MU +6%), Western Digital (WDC +3%) and Corning (GLW +0.4%). The firm upgraded Micron to a Positive rating and $18 price target ($16.45 current price) in late June.