Micron Technology, an American multinational company operating in the semiconductor sector, has published the accounts for the second quarter. Profits have exceeded the consensus. The company posted earnings of $2.14 per share (+ 9% on consensus), up $ 1.16 from the same quarter last year, when the company posted EPS of 98 cents. The company recorded revenue of $ 7.79 billion, which is more than an estimated $ 7.52 billion. JP Morgan raised the target to $ 120 from $115. he stock yesterday showed very strong volatility, probably linked to the news that Apple intends to diversify its chip suppliers also from Chinese companies. We add that the Nasdaq could now see some profit taking given the levels reached.
Micron Technology [MU.O] is stable at $77.9 in pre-trading. Yesterday, it lost 1.6% to $77.89. The stock remains in the trading range between $96 and $70. After retesting the low end in mid-March, the stock has regained strength. The good quarterly report should allow for further stretches, especially if rates begin to fall. We buy with a target of $90.
We recommend going LONG on the stock by buying the Leverage Shares 2X Micron Technology ETP (ISIN: IE00BKT66K01), with an increase in exposure on possible downturns towards $80, with short-term targets towards $88 and $90. Alert/stop loss should be below $75 (closing daily).