Analysts at Jefferies have reiterated a Buy rating on Micron Technology, Inc. (NASDAQ:MU) and have revised the price target on the stock from $36 to $33, highlighting continued company-specific challenges. The analysts believe that despite the underwhelming demand and weakness in the PC segment, Micron can outperform the market in the next 12 to 18 months.
The sell-side firm has further reduced Micron’s near-term estimates in order to account for the existing lower Dynamic Random Access Memory DRAM average selling price (ASP). Jefferies has lowered its earnings per share (EPS) estimates for FY16 from $3.65 to $3. However, the research firm believes that Micron’s upcoming 20nm product execution can provide a swing factor for EPS in the near term.