Morgan Stanley ‘tactically bullish’ on Micron into earnings

Morgan Stanley maintains an Equal Weight rating on Micron (MU) shares given how much the stock has rallied already, but is “tactically bullish” given the material acceleration being seen in AI spending as Micron grows its participation. The firm, which notes that its estimates remain 20% above consensus for August-end quarter earnings, also highlights Sandisk (SNDK), which it likes better long term and on which it has an Overweight rating. Consensus numbers have started to come up for Micron over the last few weeks, but in addition to being about 20% above consensus for August EPS, the firm is also 14% above for November after raising estimates six weeks ago, added the analyst, who has an Equal Weight rating and $98 price target on Micron shares.