What do you think of these numbers--2000 earnings per share of $1.99 and $3.05 for 2001--plus another analyst upgrade:
<<Capping a week of spectacular gains for semiconductor stocks in general and its own stock, in particular, Micron Technology (MU: news, msgs) popped to a 52-week high of 81 7/8 Friday after it was upgraded by Salomon Smith Barney and Merrill Lynch raised its price objective for the shares. Micron shares finished the day up 4 15/16, or 5.9 percent, at 77 13/16.
Based on tightening market conditions, Salomon Smith Barney's Jonathan Joseph upped his recommendation to "buy" from "outperform" and raised his price target to $100.
"Spot prices are rising again," Joseph said in his note to clients, adding that many brokers are expecting memory prices to rise to $8 as soon as next week.
Though partly driven by professional speculators, Joseph noted that the move is about six-to-eight weeks earlier than normal pickup.
"Back to school buying, which usually starts in July, has been moved up as original equipment manufacturers (OEMs) try to 'beat the rush,'" Joseph said, noting that he also believes PC vendors are expecting a stronger-than-normal second half.
This scenario also played into Joe Osha's thoughts on the stock.
"Our modeling efforts continue to reveal a shortage in available memory supply in the second half of the year," the Merrill Lynch analyst said in his research note Friday, adding that he expects available supply in bit terms to grow by less than 50 percent in the fourth quarter.
"If we really see supply growth decelerate as we expect, there is considerable upside to our earnings estimates for Micron," Osha said.
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Updated:
6/2/2000 5:03:08 PM ET
Osha, who has an "intermediate-term buy, long-term accumulate" rating on Micron shares, expects the company to report 2000 earnings per share of $1.99 and $3.05 for 2001. |
