Micron Technology, Inc. (NASDAQ:MU) negative sentiment sets-up attractive risk/reward

Susquehanna said the negative sentiment surrounding Micron Technology, Inc. (NASDAQ:MU) ahead of its Q2 results sets up an attractive risk/reward profile for the shares. The firm expects a few pennies downside to consensus, which should not surprise anyone, but the firm’s channel checks show volume improvements in March in the China handset market, which should lead to margin expansion. Susquehanna reiterated its Positive rating and $38 price target on Micron shares.

According to analysts, Micron Technology, Inc. (NASDAQ:MU) is expected to report earnings per share for the current fiscal quarter of $0.78. This is the consensus mean estimate based on the individual covering sell-side analysts’ reported numbers. The company last reported earnings for the period ending on 2014-11-30 of $0.97 for the most recent quarter.

On a consensus basis, Wall Street sell-side analysts have a mean target price of $40.325 for Micron Technology, Inc. (NASDAQ:MU). This number is based on the mean estimate from the 20 research firms that recently issued reports on the company.The most recent price target update was made on 2015-03-25.

The average broker recommendation is arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock. On a scale of 1 to 5 where 1 is a Strong Buy and 5 is a Strong Sell, has the stock ranked 1.55 based on 20 sell-side broker recommendations. Of the 20 analyst estimates, the most bullish sees the stock reaching $50 within the next 12 months while the most bearish analyst sees the stock at $32.5 within the year. There are currently 2 analysts who have recently rated the stock as a buying opportunity.

In looking at the long term growth prospects of the company, sell-side analysts have a consensus mean earnings per share estimate for the current year of $3.59 . The high end estimate for this time frame is $4.47 with the low being $2.9. In looking at the next three to five years, the long term earnings per share estimate growth rate for the company is 11.23%, based on 5 analysts providing projections.

Micron Technology, Inc., is a global manufacturer and marketer of semiconductor devices, principally NAND Flash, DRAM and NOR Flash memory, as well as other memory technologies, packaging solutions and semiconductor systems for use in computing, consumer, networking, automotive, industrial, embedded and mobile products. In addition, the Company manufactures semiconductor components for CMOS images sensors and other semiconductor products. The Company operates in four segments: NAND Solutions Group (NSG), DRAM Solutions Group (DSG), Wireless Solutions Group (WSG) and Embedded Solutions Group (ESG). The Company’s product include NAND Flash Memory, Dynamic Random Access Memory (DRAM) and NOR Flash Memory. The Company’s manufacturing facilities are located in the United States, China, Israel, Italy, Malaysia, Puerto Rico and Singapore.