Micron Technology, Inc. (NASDAQ:MU) shares fell in last trading session despite the upbeat view from analyst as well as chip maker declared a strong profit by Elpida Memory. As investors are looking forward to the longer-term affect of the Elpida takeover on the firm’s financials.
Patrick Wang, analyst at Evercore Partners, told late Thursday that there is evidently some profit-taking approach by the company in the past few months. Micron Technology, Inc. (NASDAQ:MU) shares have climb over 165% so far this year and increase over 30% particularly in the previous 3 months.
While another analyst Mark Newman at Bernstein noted that the company selloff was expected because of frequently profit-taking. The analyst increased the company price target from $20 to $24. The company NAND and DRAM will continue increase its gross margin, and provide growth remains in test. And due to lack of this clarity on the affect of Elpida on the company’s cash flow and earnings potential has arise concern in some investors.
Analyst Doug Freedman from RBC Capital’s has an outperform rating for the company, the rating was assigned due to investors concern over the Elpida, and analysts are on the other side still looking into how to robust the new acquisition will fit into the broader picture of the firm.
The global manufacturer and marketer of semiconductor devices has recently takeover the Japanese Elpida to stand on strong footing in the memory chip market for $2.5 billion.
The chip maker has declared fourth financial quarter profit of $1.51 on each share or $1.71 billion, in contrast to the loss of 24% on each share or $243 million, Q4 2012, while analyst at FactSet estimated the profit as24% on each share . The company revenue increased from $1.96 billion to $2.84 billion, while analyst at FactSet estimated the revenue as $2.7 billion. And due to the latest takeover the chip maker gain $1.31 a share.
Topeka Capital’s analyst Suji De Silva has raise price target to $18.00 from $13.50, while Sundeep Bajikar analyst at Jefferies also upped price target from $25 to $30, for the company stocks.