Chip stock Micron (NASDAQ:MU) got a leg up in the market in the closing minutes of Friday’s trading session, as word came down from Mizuho analysts that suggested better circumstances throughout its operation. Investors tended to agree, if on a limited basis, and Micron shares were up nearly 2% as the trading session came to a close.
The word from Mizuho analyst Vijay Rakesh noted that Micron would likely not only see better pricing on its product line but also improve its inventory, which would allow it to take advantage of the market conditions. Rakesh kept his Buy rating on Micron alone but also bumped up the price target from its original $72, taking it up to $82. Rakesh looks for inventories at Micron to decline with the rest of the year and looks for sales of NAND and DRAM to pick up as well. And with Micron poised to step up high-bandwidth memory production, that should set it up for excellent circumstances with next year’s arrival.
Not everyone is so certain, however. Some believe that consumer demand’s decline is going to hurt Micron’s chances at producing positive outcomes as the consumer retracts and takes the accompanying demand for memory chips with him or her. With demand dropping, and prices dropping as well, Micron’s margins are at risk. There’s a case to be made there, certainly—consumer demand is crumbling before our very eyes—but remember that most of Rakesh’s projections impact next year, not the rest of this year.
What is the Forecast for Micron Stock?
Meanwhile, analysts are still largely on Micron’s side here. With 19 Buy ratings, six Holds, and one Sell, Micron stock is considered a Moderate Buy. Further, Micron stock comes with 11.79% upside potential thanks to its average price target of $77.
