Micron Is Stronger--and Pricier--Than Ever
The memory supplier is well-positioned, but we continue to view shares as significantly overvalued.
On May 21,
As a result of the stronger near-term expectations, we are raising our fair value estimate to $36 per share from $34 for no-moat Micron. However, we continue to view shares as significantly overvalued at current levels, and recommend prospective investors seek a wider margin of safety. Our concerns primarily stem from our view that the recent trend of rational investment is unsustainable, particularly as Chinese vendors look to enter the memory fray and the likes of Samsung potentially increase capacity.
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