Micron, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Vivek Arya from Bank of America Securities reiterated a Hold rating on the stock and has a $180.00 price target.
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Vivek Arya has given his Hold rating due to a combination of factors influencing Micron’s current market position. The company is experiencing benefits from increased AI demand, which is driving sales of high bandwidth memory, and a disciplined supply environment that is supporting pricing in both traditional and new markets. However, Arya notes that while Micron’s gross margins are expected to improve, the entry of competitors like Samsung into the high bandwidth memory market could affect market share and pricing dynamics in the coming years.
Additionally, Arya points out that much of the positive earnings revisions have already been anticipated by investors, as reflected in Micron’s significant stock price increase year-to-date. Despite the strong demand for AI and server CPUs, which is beneficial for related companies, the potential for increased capital expenditures and competitive pressures in the memory sector presents risks. These factors contribute to Arya’s decision to maintain a Neutral stance on Micron’s stock, with a price objective of $180.
According to TipRanks, Arya is a 5-star analyst with an average return of 19.3% and a 59.92% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Advanced Micro Devices.
In another report released yesterday, Goldman Sachs also reiterated a Hold rating on the stock with a $130.00 price target.