Schwab SoundView upgraded Micron Technology (MU) to outperform from neutral.
Analyst Hans Mosesmann says that following a trip to Taiwan, DRAM players Nanya and Powerchip confirm that contract pricing is stable-to-increasing in March, and commitments for second-quarter point to 15% to 20% bit growth. He notes that DRAM inventories are at 10 days, below the safety buffer level of 2 to 3 weeks; supply looks constrained over next 3 to 5 months as DRAM capacity shifts to Flash memories and 200mm inefficiencies. He says as the year progresses, the DRAM industry should benefit from a pickup in enterprise PC demand.
Mosesmann raised his $13 price target on Micron shares to $21. Sees a loss of 1 cent per share in the second quarter, and EPS of 10 cents in fiscal year 2004 (August).