Nomura keeps $100 target on Micron after positive management meetings - InvestingChannel

Nomura keeps $100 target on Micron after positive management meetings

After spending two days meeting investors with Micron Technology’s new CFO David Zinsner and Head of Investor Relations Shanye Hudson, Nomura Instinet analyst Romit Shah maintains a Buy rating on the shares with a $100 price target. The stock closed yesterday down $3.55 to $49.84 after UBS initiated the shares with a Sell rating. Shah says he left the meetings with “several positive takeaways.” The analyst does not anticipate a “massive step-up” in capital expenditures next fiscal year. Further, management did not seem concerned that NAND selling price declines in the February period would persist, Shah tells investors in a research note. He adds that Micron continues to expect DRAM suppliers to be rational about capacity expansion in an effort to sustain high margins and cash flow.