DRAM supply/demand tightness should continue in second half of 2018, says Baird
Baird analyst Tristan Gerra recently met with companies in Asia and left with an "incrementally positive outlook" on DRAM trends for the latter half of the year. "In DRAM, double-digit content increases (data center, smartphones) remain a key catalyst for continued tight supply/demand," Gerra wrote. "In NAND, pricing trends remain very healthy relative to historical trends, while high demand elasticity should benefit revenue." In conjunction with the note, Gerra maintained his outperform rating and $100 price target on Micron Technology Inc. shares. The stock is down 1.8% in Friday trading but up 90% over the past 12 months, compared with a 33% rise for the PHLX Semiconductor Index and a 14% gain for the S&P 500 .
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