Don’t Forget to Add This Memory Chip Maker to Your Buy List

by Sam Collins | July 11, 2013 1:42 am

Micron Technology (MU[1]) — This company makes semiconductor devices, including NAND, DRAM and NOR flash memory products. Credit Suisse analysts have an “outperform” rating on the shares, emphasizing the company’s continued execution of its strategy to diversify and upgrade its product line, and recently raised its 12-month price target to $20 from $14. On June 19, the company announced better-than-expected fiscal Q3 earnings, prompting Credit Suisse to raise their full-year 2013 and 2014 earnings guidance to $0.08 and $1.65 from a loss of $0.22 and $0.64, respectively.

The stock has fallen from a high of $14.60 on July 1, on what appears to be profit-taking. In doing so, it broke its near-term support line and 20-day moving average. Its 50-day moving average at $12.13 is its next support line. The long-term bullish support line is just under $11.

Since both the fundamental and technical conditions of MU are positive, a buy under $12 seems appropriate with a short-term target of $14.50 and a longer-term target of $18.

MU Chart
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