Analyst Christopher Danely from Citi reiterated a Buy rating on Micron and keeping the price target at $150.00.
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Christopher Danely has given his Buy rating due to a combination of factors influencing Micron’s financial outlook. The primary driver is the anticipated increase in gross margins, which are expected to surpass previous highs due to a favorable mix of high-bandwidth memory (HBM) and improved pricing in the DRAM sector, fueled by rising demand from the AI industry. Additionally, the demand for NAND is projected to grow, particularly in the data center market, further supporting revenue growth.
Danely also highlights the significant quarter-over-quarter growth in HBM sales, which is expected to continue, contributing to the path towards achieving a 50% gross margin. Despite concerns about potential competition from Samsung in the HBM market, the overall outlook remains positive, with a target price of $150 based on expected earnings per share. The expected share price return of 22.9% underscores the confidence in Micron’s ability to capitalize on these market dynamics.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $137.00 price target.
Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MU in relation to earlier this year.