Micron Technology, Inc. (NASDAQ:MU), one of the top five semiconductor companies in the world, released their fiscal Q2 report on Thursday. However, before the results were in, analysts were already making recommendations, including Drexel Hamilton analyst Richard Whittington. Despite concerns about falling prices for memory chips, Richard recommended BUY Micron noting that, “the increasing sophistication of mobile devices, including Apple Inc. (NASDAQ:AAPL)’s move to a 64-bit chip architecture in the iPhone and iPad, are placing rising demands for DRAM.”
So far, Richard has already earned +2.0% over S&P 500 (INDEXSP:.INX) with this recommendation, helping him reach a +4.0% average return over S&P-500 and a 70% success rate of recommendations. In this week’s Flashback Friday, let’s take a look at Richard’s past Micron Technology, Inc. (NASDAQ:MU) recommendations. To review all of Richard’s recommendations be sure to download TipRanks.
Richard has a 75% success rate recommending Micron Technology, Inc. (NASDAQ:MU), including his December 31st BUY Micron recommendation. Richard made this recommendation focusing on the face that, a “variety of supply and pricing conditions for DRAM and NAND flash chips could benefit the company.” Richard went on to explain noting, “This supply increment has pressured street pricing in NAND modules and add-in cards but left embedded solutions largely unimpacted. Solid state displacing HDD in notebook and enterprise applications where SanDisk specializes, hence are thought generally not impacted. Following a most unusual last quarter of NAND ASPs actually rising year- 23.69 year, modest consumer price declines are thought financially miniscule. Tax and investment incentives too good to refuse, Micron has eschewed any further expansion at its long-standing Lehi, Utah NAND facility.” This recommendation earned Richard +16.8% over S&P-500.
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And Richard saw even greater success when he recommended BUY Micron Technology, Inc. (NASDAQ:MU) in October of 2013. Richard initiated coverage of Micron with a BUY rating and a $24.00 price target. After reviewing the past year’s growth, Richard was confident that the coming year would be just as profitable and Micron demand would be high. Richard argued, “Building upon the last year’s LTE and automotive/industrial thrust, the year ahead looks to be driven by cloud build out, more powerful mobile implements, wireless base stations and initial roll out of mobile video networks. General Electric Company (NYSE:GE), Parker-Hannifin Corporation (NYSE:PH), Ingersoll-Rand PLC (NYSE:IR), Honeywell International Inc. (NYSE:HON) and Schlumberger Limited. (NYSE:SLB) point to accelerating order growth, Europe and China joining the U.S. and emerging regions in purchases of tech-denominated industrial goods and autos.” Richard earned +24.5% over S&P-500.
Despite all of his success, Richard has experienced one loss recommending Micron Technology, Inc. (NASDAQ:MU) from earlier this year. In February, Richard recommended BUY Micron with a $30 price target because he liked “the trends in both mobile DRAM and also in server applications of DRAM for cloud computing.” Richard added, “Mobile video on the way to pads and 5”-6” phones = step function greater DRAM for graphics processing, meaning upside bit demand lies ahead. Fewer competitors in DRAM comprising about 70% of Micron’s sales and increased mobile memory loadings could sustain pricing through 2015.” Even though this recommendation left Richard with -8.6% over S&P-500, his latest recommendation is seeing positive results.
Now that you know Richard’s past record recommending Micron Technology, Inc. (NASDAQ:MU), will you continue to follow Richard’s recent recommendation now that Micron has released its financial report? If you wish to follow Richard, and other analysts, be sure to download TipRanks and start making informed decisions with advice you can trust.