Bank of America Securities analyst Vivek Arya has reiterated their neutral stance on MU stock, giving a Hold rating on March 18.
Vivek Arya’s rating is based on a combination of factors affecting Micron’s financial outlook. Despite the promising opportunities in AI and high-bandwidth memory, Micron’s profitability has not improved as expected. The company’s gross margins remain weak due to unfavorable pricing and a shift towards the consumer market, along with ongoing challenges in NAND underutilization.
Additionally, startup costs and investments in DRAM are expected to further impact margins. Arya also highlights the competitive nature of the memory market and the significant investments required to support AI technology, which contribute to a cautious earnings forecast. Although sales and EPS estimates have been slightly increased, the price objective remains at $110 due to these ongoing risks and challenges.
According to TipRanks, Arya is a 5-star analyst with an average return of 11.9% and a 51.00% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Marvell, and Intel.
In another report released on March 18, Morgan Stanley also maintained a Hold rating on the stock with a $91.00 price target.
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