Micron Is A Buy, According To Mizuho

Courtesy of Benzinga.

Micron Technology, Inc. (NASDAQ: MU) was initiated at Buy with a $39 price target by Vijay Rakesh of Mizuho Securities. The tech company was recently trading at a price of $27.35, up 1.6 percent.

Rakesh believes that Micron's consolidated DRAM, a memory chip that uses voltage to store data, should be a key contributor to increased margins and profitability.

Ernie Maddock on May 5 joined Micron as the company’s new chief financial officer. Maddock hopes to get in front of investors given his deep experience with converts and investor relationships.

Micron in April reported F15Q2 revenues of $4.2 billion alongside a GAAP net income $934 million. Revenue guidance for F15Q3 is between $3.8-$4.05 billion.

Although Mizuho holds Micron as a Buy, there are still a few concerns:

• Memory ASP is declining.
• There is big market share pressure from the industry.
• Since Micron is a multinational company, currency risks apply.

The stock has been down 6 percent during the past week, 10 percent in the past month, and almost 21 percent over the past six months.

Posted-In: Mizuho Securities Vijay RakeshAnalyst Color Price Target Initiation Analyst Ratings