Micron price target raised to $550 from $500 at TD Cowen

TD Cowen raised the firm’s price target on Micron (MU) to $550 from $500 and keeps a Buy rating on the shares after the company reported quarterly results and guided for about $19 in EPS for the May quarter, versus the Street at $11.70, on 81% gross margins. Bears will likely push the “peak GM” theory that the stock peaks when gross margin peaks, but the firm disagrees as it contends that gross margins might peak near 90% later this year and it believes the focus should move to earnings durability, the analyst added.