Market Update: Micron Technology Inc (NASDAQ:MU) – Micron, Samsung, Hynix to Benefit from Stabilizing Pricing, Says Bernstein

[at Barrons.com] – Micron Technology (MU), Samsung Electronics (005930KS), and SK Hynix (000660KS) may see relief in 2016 in the DRAM market, writes Bernstein’s Mark Newman this morning, after reviewing stats on memory-chip pricing that suggest “stabilization.” “PC DRAM pricing in December showed signs of stabilization, with contract price flat on MoM basis and spot price down 2% over the same period,” writes Newman, who has Outperform ratings on the shares of all three stocks. In December PC DRAM contract prices were flat on MoM basis, while 4Gb PC DRAM spot prices are down 2% over the same period: While we are heading into a seasonally weak quarter, we are encouraged by the stronger pricing trend shown in December. In addition to inventory having been burnt off in both the personal computer and the smartphone market, Newman thinks that “the long-term supply growth will remain constrained due to technological complexity and more rational behavior, and this will bring the current oversupply situation back into balance.” Shares of Micron today are up a penny at $14.17. Read more on this. Micron Technology, Inc. (MU) , with a current market cap of $14.71B, began trading this morning at $14.10. Today, shares have traded between $14.03 and $14.29 per share with a trailing 52-week range being $13.50 to $35.52. Priced at 28.90x this year’s forecasted earnings, MU shares are relatively expensive compared to the industry’s 10.38x forward p/e ratio. In a review of the consensus earnings estimate this quarter, 22 sell-side analysts are looking at $-0.07 per share, which would be $0.81 better than the year-ago quarter and a $0.29 sequential increase. In looking at the bigger picture, the full-year EPS estimate of $0.49 would be a $2.20 worse when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $3.06 Billion. If realized, that would be a 26.62% decrease over the year-ago quarter. More recently, Morgan Stanley upgraded MU from Equal-Weight to Overweight (Dec 17, 2015). Previously, Needham downgraded MU from Strong Buy to Hold. The average price target for MU shares by the analysts covering the stock is $18.45, which is 30.85% above where the stock opened this morning. See more in (NASDAQ:MU) Similar Articles: Market Update: Micron Technology Inc (NASDAQ:MU) – Here’s Why Micron Technology (MU) Stock is Advancing Today Company Update: Micron Technology Inc (NASDAQ:MU) – Micron Technology (MU) Stock Higher on Possible SanDisk Acquisition Company Update: Micron Technology Inc (NASDAQ:MU) – What to Expect When Micron Technology (MU) Reports Earnings Tomorrow