Fri, May 30, 2014 - Page 14 News List

Inotera shares soar after revised shipment forecast

Staff writer, with CNA

Shares of Inotera Memories Inc (華亞科技) soared yesterday after the DRAM maker upgraded its shipment forecast for the second quarter amid lingering optimism toward global demand, dealers said.

Strong interest also reflected a move by Barclays Capital to raise its target price on shares of Inotera — a joint venture between Nanya Technology Corp (南亞科技) and Micron Technology Inc of the US — which prompted investors to chase prices soon after the local bourse opened, the dealers said.

Shares of Inotera surged 4.8 percent to NT$41.45 in Taipei trading yesterday, out-performing the TAIEX, which was down 0.11 percent at 9,111.50 points.

“The shipment forecast upgrade for the April-June period served as the major catalyst to a strong showing of the stock today,” MasterLink Securities (元富證券) analyst Tom Tang (湯忠謙) said.

“The revised estimate indicates that Inotera will continue to benefit from solid demand for mobile devices as the company has assigned large resources to specialty DRAM production to cater to mobile device manufacturers,” he said.

In an investor conference on Wednesday, Inotera said that it has raised the sequential shipment growth estimate for the second quarter from 1 to 2 percent to 5 percent.

If DRAM prices continue to rise as expected, it gross margin for the second quarter could top 54 percent seen in the first quarter, it said.

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