by Sam Collins | November 14, 2013 1:13 am
Micron Technology (MU) — The first time MU was recommended this year in the Trade of the Day was on March 25, near $10 with a target of $12.
Then, on June 7, with the stock at $12.56, I increased my target to $16-plus. I cited a Stifel Nicolaus analyst who also raised his price target from $14 to $16 due to better prices for DRAM and NAND flash products. These are the core of Micron’s business, and it was noted that these prices would likely continue to rise through 2014.
On June 19, MU reported fiscal Q3 results that were well above expectations, and the company issued stronger guidance for fiscal Q4. This resulted in a number of analysts raising earnings and price estimates, including myself, as I upped my trading target to $20 on June 27.
Last month, Micron reported fiscal Q4 revenue that was in line with estimates, excluding accounting gains related to the acquisition of Elpida, and better-than-expected earnings of $0.29 per share.
Analysts’ median price target is $21, with the highest target being $31. Wednesday’s break from a double-top, supported by an MACD buy signal, renders a trading target of $24. MU should be bought under $19 with a stop-loss at $16.50.
Source URL: http://investorplace.com/2013/11/trade-day-micron-technology-mu/
Short URL: http://invstplc.com/1nyG8Qd
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.