Micron Technology (NASDAQ:MU) saw gains in trading after top-rated Citi analyst Christopher Danely reaffirmed a Buy rating on the stock. Danely expects that Micron’s calendar fourth-quarter earnings will surpass expectations and the chip major is likely to benefit from “artificial intelligence love.”
The bullish outlook is attributed to the strong DRAM pricing and sales of higher-priced, higher-margin High Bandwidth Memory (HBM), according to the analyst. Micron’s earnings announcement is scheduled for March 20th.
Analyst Micron Financial Forecast
Danely has forecasted that Micron will report a loss of $0.28 per share on $5.3 billion in revenues for the fiscal second quarter, outperforming the consensus estimates of a loss of $0.42 per share on the same revenue figure. Looking ahead to the fiscal third quarter, the analyst envisions Micron achieving $6 billion in sales with earnings per share expected to reach $0.26.
The analyst has a street-high price target of $150 on the stock, implying a significant 60% upside potential at current levels. Over the past year, MU stock has surged by more than 70%.
Is MU a Good Stock to Buy Now?
Analysts remain bullish about MU stock with a Strong Buy consensus rating based on 25 Buys and one Hold and Sell each. The average MU price target of $101.88 implies an upside potential of 9.1% at current levels.
