After the downgrade comes an upgrade, which pushed up the shares of Micron Technology, Inc. (NASDAQ:MU) during the previous day. Though the up gradation does not come for Micron but its peer SanDisk Corporation (NASDAQ:SNDK), though it still uplifted the sentiment on the semiconductor industry. Goldman Sach’s analyst Mark Delaney revised the rating on SanDisk to Buy while he also raised the price target to $106 from $100.
A new hope
Delaney mentioned in his noted that the NAND flash supply and demand balance looks favorable in 2015 and should help the chipmakers. At the same time, he added that Low chip equipment orders in the second half mean that the supply growth will be reasonable in the next two-quarters. Delaney said that demand should pick up following a seasonally sluggish first quarter. Goldman’s thumbs up to SanDisk have worked in favor of Micron Technology, Inc. (NASDAQ:MU). It is evident from the share performance of Micron, which moved up by nearly 1% to $27.88 in the last session. It is to be noted that NAND comprised 28% of the company’s sales in November.
Downgrade From Nomura
Earlier in March, Micron Technology, Inc. (NASDAQ:MU) received a setback from Nomura that downgraded the stock to Neutral and trimmed down the price target on it from $40 to $30. The research house’s analyst Romit Shah wrote in his note that the memory giant is lagging behind in terms of technology transitions. Shah added that the third-quarter outlook released by the company is excessively high and not realistic. He added that Micron Technology, Inc. (NASDAQ:MU) has lost a portion of DRAM market share to Samsung.
Shah noted that the company might require allocating more investments in DRAM/NAND in 2016 in order to maintain its market share. In view of the latest developments, Shah slashed down the 2015 and 2016 EPS estimates for the company to $3.35 and $4.00 respectively. Hence, Goldman’s fresh comments have come as a rescuer for Micron Technology, Inc. (NASDAQ:MU).
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