Needham lowers its Micron target to nearly 80% upside
Needham lowers its Micron (NASDAQ:MU) target from $100 to $80, a 79% upside to Friday’s close.
Firm says that after Micron
posted a stellar Q4, the company guided gross margins to decline Q/Q due
to the China tariffs and some inventory adjustments.
Needham thinks it will take Micron
three to four quarters to resolve the issue, which is disappointing but
largely out of Micron’s hands.
The firm sees a healthy
demand/supply balance for DRAM with bit growth of about 20% and demand
driver growth of at least 30%.
For NAND, cost reductions will take hold and demand will be greater than supply.