Micron price target raised to $325, named Top Pick at Morgan Stanley

Morgan Stanley analyst Joseph Moore raised the firm’s price target on Micron (MU) to a “Street high” $325 from $220 and keeps an Overweight rating on the shares, which are now the analyst’s Top Pick. Double digit price increases in Q4 and Q1 for DDR5 “understate” how good the market is, with transactions well above that level, says the analyst, who adds that buyers describe this as similar to 2018, but with the difference being that earnings are entering that period at peak levels, indicating much higher peaks. Conditions in DRAM will lead to new highs in earnings power, the analyst contends.