Once again, tech stocks begin the day strongly, then fade.
Micron: Don’t Fear DRAM Glut, Says Citi
Don't worry about a surge in DRAM capacity wrecking Micron Technology, says Christopher Danely of Citigroup; the spending on DRAM capacity is not likely to cause a glut anytime soon.
By
Tiernan Ray
Aug. 1, 2017 10:32 a.m. ET
Shares of Micron Technology ( MU) are up 59 cents, or 2%, at $28.71, following a bullish note this morning from Christopher Danely of Citigroup, who advises investors to look past worries about over-supply of DRAM chips.
Danely, who has a Buy rating on Micron shares, and a $45 price target, writes that a 12% decline in Micron shares of late is a result of “fears of memory overcapacity,” according to a write-up of his note to clients provided by TheFlyontheWall. Citigroup does not disseminate its research to media.
However, Danely views the increase in capital spending on DRAM this year, from $8.9 billion previously to $9.9 billion currently, as being too little to cause a downturn.
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