Auriga Maintains MU's Buy Rating and Target Price

Auriga maintains Buy rating and $11 price target on Micron Technology Inc. (NASDAQ: MU) ahead of its FQ111 results on Wednesday, December 22nd, after market close. DRAM is clearly in oversupply, and Auriga are unconvinced that the recent uptick in NAND pricing will be sustainable into H111. It seems clear that consensus EPS estimates remain far too high, but the Aurgia model suggests that MU will not burn cash this cycle.