The shares of flash memory provider Micron (MU) are climbing in the down market after Morgan Stanley reported that flash memory trends are surpassing its expectations.
TRENDS BEATING EXPECTATIONS: Checks indicate that demand for flash memory is trending above Morgan Stanley's previous expectations, wrote Joseph Moore, an analyst at the firm. The supply of flash memory has not been able to keep up with the demand of cloud computing companies and some PC makers, Moore reported. Although spot flash memory prices have dropped recently, they should "firm" and contract prices should "at least hold" when seasonal demand arrives in July, the analyst stated.
NEAR-TERM OUTLOOK: The results of Micron's May quarter will probably beat expectations by a small amount, wrote Moore, noting that the company tends to issue conservative guidance. Flash memory prices look "increasingly likely" to rise through the end of the year, and Micron's stock will probably test its 2014 high of $36, the analyst stated. He set a $34 price target on the stock.
PRICE ACTION: In morning trading, Micron rose 2.3% to $30.45.
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