Ahead of the Bell: Micron
12.07.2007 11:52
Computers
- Source: Forbes
Micron Technology Inc. is likely to talk about rising memory device prices at its Thursday analyst day. Lehman Brothers analyst Tim Luke reiterated an "Equal Weight" rating on shares and lifted his target price to $15 from $14 ahead of the meeting. Shares could rise if the company talks about plans to reduce manufacturing costs, cut staff or discusses consolidation trends in the sector, wrote Luke. The analyst also said excess industry capacity and elevated inventory levels could cause headwinds in the second half of the year. The analyst said the company might focus on rising contract prices for DRAM, or Dynamic Random Access Memory, chips at the meeting. "However, it is our opinion that the DRAM market is currently experiencing an oversupply - we do not believe the recent correction in contract prices is a result of increased demand," he wrote. Jefferies & Company Inc. analyst John Lau, however, recently predicted rising DRAM and NAND flash memory demand in the seasonally strong second half of the year. The analyst, in a Wednesday client note, lifted his rating on Micron to "Buy" from "Hold." ______ Questions or comments about this story should be directed to the Financial News desk of The Associated Press at 212-621-7190. Copyright 2007 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
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