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NEW YORK (TheStreet) -- MKM Partners initiated coverage of Micron Technology (MU) with a "neutral" rating on Wednesday.

The analyst firm set a price target of $33 for the chipmaker. MKM Partners expects Micron to report earnings of $3.07 a share for 2015. The firm set its 2016 and 2017 EPS estimates for the company at $3.58 and $3.78 a share, respectively.

"Despite sentiment already being negative, we think continued caution is warranted in the PC supply chain, as a recovery into better seasonality could be slow and gradual," MKM analyst Ian Ing wrote. "Starting mid-year, we look for signs whether demand drivers are sufficient to tilt the DRAM market into sustained balance, helped by our top thematic ideas around smartphone growth and enterprise data center."

Ing also wrote that MKM likes how Micron "has runway to improve its cost-of-capital and close the NAND competitive gap."


Separately, TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • MU's revenue growth has slightly outpaced the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 13.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, MU has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, MICRON TECHNOLOGY INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • You can view the full analysis from the report here: MU Ratings Report