by Sam Collins | May 9, 2013 5:53 am
Micron Technology (NASDAQ:MU) — This producer of semiconductor NAND flash, DRAM and NOR flash memory and image sensors has had stiff competition that has led to losses. However, recently reported fiscal Q2 revenue and margins were significantly higher than analysts’ estimates. This was mostly due to a 40% jump in revenue from solid-state drives. And the company expects another “double-digit percentage increase this quarter.”
Both JP Morgan (NYSE:JPM) and Credit Suisse (NYSE:CS) have upgraded the stock. Credit Suisse increased its target price from $8 to $14 and expects MU to produce a profit of $0.64 in fiscal year 2014, ended in August, versus a loss this fiscal year.
In December, following the break from a long-term consolidation, MU executed a bullish “golden cross” when its 50-day moving average crossed above its 200-day moving average. In February, it broke from an ascending triangle, and Wednesday, popped out of a flag formation on a new closing high accompanied by a high-volume buy signal from its MACD.
Seldom are so many textbook chart patterns plotted on a single screen. Thus, the trading target of $14 is supported by strong technical characteristics.
Source URL: http://investorplace.com/2013/05/trade-of-the-day-micron-technology-nasdaqmu/
Short URL: http://invstplc.com/1fyQJ9J
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.