Lazard Capital Maintains Buy on Micron Technology (MU)

Lazard Capital is out with its report today on Micron Technology (NASDAQ: MU), maintaining Buy.

In a note to clients, Lazard Capital writes, "We recommend that investors BUY the stock for the following reasons: 1) we believe that for the next couple of quarters we will see an increase in DRAM ASPs due to an increase in PC demand, low levels of inventory, and tight capacity; MU stock is directly correlated to DRAM ASPs; 2) with IMFS ramping later this year and the current strong demand for NAND from tablets, we believe we will see upside to GM and leverage in the NAND segment; 3) with the weakening of the Taiwanese DRAM players and lower capex spending, we see a favorable competitive environment for MU; 4) the current component environment due to the Japanese earthquake could be favorable for Micron. We therefore believe that the stock should be trading closer to 1.8x BV or $15 per share."

Shares of MU closed Friday at $10.07.