And to add insult to injury, I just saw an upgrade of MU on the Dow Jones Newswires. Analyst claims recent actions by LSI and NSM present a good buying opportunity...
John
Dow Jones Newswires -- August 24, 1998
BancAmerica Ups Micron Technology To
Strong Buy
Dow Jones Newswires
No further information is available at this time.
No further information is available at this time.
NEW YORK -- BancAmerica Robertson Stephens Inc. analyst Daniel
Niles raised his investment rating on Micron Technology Inc. (MU) to
strong buy from buy, according to a research note.
Niles also raised his fiscal 1999 earnings estimate to 80 cents a share from
70 cents because of higher-than-expected spot prices for dynamic random
access memory chips (DRAM) and a faster-than-expected decline in
Micron's costs, the research note said.
The analyst increased his estimate for Micron's fiscal fourth quarter to a loss
of 53 cents a share from a loss of 47 cents.
"Very little of current DRAM production is being sold at spot market prices
and...price increases for contracts have only recently begun," Niles said in
the note.
The analyst met with management last week, according to a contact at the
firm.
"We believe that the market correction, recent pre-announcements" - by
LSI Logic Corp. (LSI) and National Semiconductor Corp. (NSM)- "and a
sector downgrade made by a competitor last week have created an
execeptional buying opportunity," Niles said.
The analyst cited improvements in spot pricing for 65-megabyte DRAM
chips, a sharp rebound in demand from PC makers, and increasing memory
per PC - a trend that's leading to a "100% increase in DRAM demand" in
the second half of 1998 versus the first half.
"Capacity cutbacks should lead to DRAM supply/demand balance by the
end of they year," Niles wrote.
John |
