Citi analyst Christopher Danely raised the firm’s price target on Micron (MU) to $240 from $200 and keeps a Buy rating on the shares. The firm raised its estimates for Micron further above consensus to reflect “higher and sustainable” DRAM pricing. Citi believes Micron’s gross margins, due to higher DRAM pricing and longer term contracts, will get back to 60% with earnings per share above $23.00, almost double the company’s previous peak earnings of $12.26. DRAM will be the next chip to see long-term contracts given its importance to artificial intelligence and projected undersupply, the analyst tells investors in a research note.
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