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

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Sam

From: Unwelcomeguest	2/12/2020 12:12:44 PM
	1 Recommendation Read Replies (1) of 4826

Received in my eTrade account today regarding Micron. Bolding is mine. Micron Stock Is Rallying After an Analyst Projected a Rebound in Memory-Chip Pricing -- Barrons.com 11:54 AM ET 2/12/20 \| Dow Jones By Eric J. Savitz Micron Technology shares spiked Wednesday morning after UBS analyst Timothy Arcuri lifted his rating on the stock to Buy from Neutral and raised his target price to $75 from $47. Arcuri's bet: Micron's fortunes are going to measurably improve as the dynamics in the memory-chip industry recover. "As cyclical concerns evaporate, structural dynamics should carry the day," he said in a research note. Arcuri wrote that "the time has finally come when Micron (ticker: MU) can materially outperform over a sustained period of time." After assessing the cyclical and structural aspects of both Micron and the memory industry as a whole, Arcuri concluded that Micron "is in a much stronger position in a structurally better industry on the cusp of a cyclical upswing." He thinks that the improving cycle in DRAM should last deep into calendar 2021. The analyst said he thinks Micron deserves a higher multiple "given its improving competitive position and through-cycle financial performance" comparable with or even better than other major chip companies with integrated manufacturing models, such as Intel (INTC) or Texas Instruments (TXN). Arcuri thinks the industry is headed into a 2-year period of DRAM undersupply. For NAND memory, he sees a shorter period of short supply lasting through the calendar 2020 first half, but with a flip back to oversupply after that. DRAM is used in desktop computers and servers, while NAND is flash memory, found in smartphones and solid-state hard drives. The analyst raised his EPS estimate for the fiscal year ending in August 2020 to $2.70, from $1.75, now well above the Street consensus at $2.30. For fiscal 2021, he jumps his forecast up to $7.42 from $4.06, above consensus at $5.51. Micron shares were up 6% to $60.69 near midday, and traded as high as $61, a new 52-week high. The Nasdaq Composite Index was up 0.7%. Write to Eric J. Savitz at eric.savitz@barrons.com > Dow Jones Newswires February 12, 2020 11:54 ET (16:54 GMT)

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