Micron: Rises as KeyBanc sees signs of recovery in memory demand

Silicon Motion Technology

10/09/2019 13:21

** Shares of Micron Tech  MU.O  up 0.8% at $49.50 premarket 
    ** KeyBanc raises PT to $58 from $48 on signs of recovery in
memory demand; median PT of 34 brokerages is $50
    ** Brokerage says barring a recession, memory tends to
improve through 2020 and Micron is well positioned to benefit
from long-term drivers related to compute and storage
    ** Says DRAM, which accounts for roughly 70% of MU's
revenue, has a likely healthier market than NAND in the long run
due to fewer competitors, high barriers to entry and supply
constraints related to scaling limitations
    ** Expect both NAND and DRAM inventories to decline in 2H,
with NAND pricing likely to steadily increase through H2 and
DRAM pricing likely to stabilize by end of the year - KeyBanc
    ** Other chipmakers - Advanced Micro Devices Inc  AMD.O ,
Nvidia Corp  NVDA.O  and Intel Corp  INTC.O  - marginally lower 
    ** Also on cards is a press event by MU's customer Apple Inc
 AAPL.O , where it is expected to unveil its latest iPhones
 urn:newsml:reuters.com:*:nL3N26123M
    ** MU up 57.8% this year, outperforming the 36.5% gain in
the broader Philadelphia chip index  .SOX 

 (Reporting by Medha Singh in Bengaluru)
 ((medha.singh@thomsonreuters.com))