Wednesday, March 26, 2008
Semiconductor analyst lowered estimates on Micron Technology Inc’s February quarter estimates due to a combination of memory price deterioration, lower gross margin assumptions, and weaker than initially anticipated image sensor volumes.
“Our new price target is lowered to $8.50 from $10 and reflects 0.66 book value. The current memory environment reflects one of the worst memory cycles we have ever seen, and we do not foresee price/book ratios returning above 1 until the supply/demand imbalance is corrected,” the analyst reported in a reserach note.
That said, DRAM prices firmed in February and March and the research company believes the NAND market will begin to see improvements post the seasonally slow period for bit consumption. “We believe Micron is better positioned than most in this downturn with sufficient working capital and diversified manufacturing,” he continued.
By: DocMemory
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