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Technology Stocks : WDC, NAND, NVM, enterprise storage systems, etc.

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From: Unwelcomeguest	2/7/2020 7:58:06 AM
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I didn't see this upgrade for MU yesterday and I see it hasn't been posted. Buy Micron Stock to Play Higher Memory-Chip Pricing, Analyst Says -- Barrons.com 11:04 AM ET 2/6/20 \| Dow Jones By Eric J. Savitz Micron Technology shares are trading higher Thursday after Raymond James analyst Chris Caso upped his rating on the memory chip maker to Strong Buy from Market Perform, setting a price target of $70, citing an upturn in memory pricing. Caso asserts in a research note that supply/demand conditions for both DRAM and NAND memory chips are "highly likely to improve further as the year progresses." He finds that NAND inventories are already at normalized levels, after running above historical norms last year, while DRAM is "expected to return to normal" in the first half of calendar 2020. Micron (ticker: MU) is a leader in both the DRAM and NAND semiconductor markets. The analyst notes that capital spending on memory capacity "has been in sharp decline for three quarters," which should limit supply additions in the 2020 second half. He points out that it generally takes six to nine months for capital spending by chip makers to show up in added capacity. Caso also says that customer inventory has normalized, and that demand from the large cloud players has improved. He sees tailwinds for Micron in the second half from extra DRAM demand for Apple's (AAPL) next-generation iPhone and other 5G handsets, while NAND flash gets a demand boost from the rollout of next-generation console games from both Sony (SNE) and Microsoft (MSFT). His forecast for Micron's fiscal-year August 2021 profit jumps to $5.47 a share, from $4.17, which brings him in line with Street estimates. Micron stock was up 2%, at $57.93, in recent trading. The S&P 500 was up 0.2%. Write to Eric J. Savitz at eric.savitz@barrons.com

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