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.
Micron Technology [MU.O] is down to $78.3 in pre-trading (-1.25%). Yesterday, it gained 3.5% to $79.16. 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).