Melius starts Micron with Buy on lasting memory cycle

Melius Research analyst Ben Reitzes initiated coverage of Micron (MU) with a Buy rating and $700 price target The firm views memory companies as core to its AI coverage. Memory names fit well with AI semis, AI hardware and hyperscalers, the analyst tells investors in a research note. Melius believes the AI memory cycle may continue through the end of the decade. The market will eventually be willing to pay more for the “unusual durability of the margin and demand profiles” that AI makes possible across high bandwidth memory, DRAM and NAND, the firm contends, It started both Micron and SanDisk with Buy ratings.