Krish Sankar, an analyst from TD Cowen, maintained the Buy rating on Micron. The associated price target was raised to $180.00.
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Krish Sankar has given his Buy rating due to a combination of factors that suggest Micron’s stock will continue to perform well in the short term. The current market cycle emphasizes the importance of average selling price trends, with expectations of continued growth in book value rather than multiple expansion. There is potential for Micron to exceed earnings per share guidance for the November quarter, which could further boost investor confidence.
Additionally, despite being in a de-rating cycle, Micron’s stock has historically outperformed the broader semiconductor index, albeit to a lesser degree than during re-rating cycles. The analyst notes that near-term fundamentals are promising, with expected price increases in DRAM and NAND over the next few quarters, which are better than previous estimates. This positive outlook is supported by the longest recorded DRAM upcycle, which is expected to continue, potentially leading to higher-than-forecast earnings in the coming years.
In another report released yesterday, Mizuho Securities also assigned a Buy rating to the stock with a $182.00 price target.
Based on the recent corporate insider activity of 75 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.