Citi analyst Christopher Danely reiterated a Buy rating on Micron today and set a price target of $240.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Christopher Danely has given his Buy rating due to a combination of factors that indicate a positive outlook for Micron’s stock. One key reason is the anticipated increase in demand for DRAM, driven by its critical role in the AI supply chain. This demand is expected to lead to long-term contracts, similar to those seen with other major players like NVIDIA and AMD, which should result in higher and more sustainable pricing for DRAM.
Furthermore, Danely projects that Micron’s gross margins will return to their peak levels, significantly boosting earnings per share (EPS) to new highs. The forecasted expansion of gross margins and the doubling of peak EPS from previous levels underscore the potential for substantial financial growth. Consequently, Danely has raised the sales and EPS estimates for the coming years and increased the price target for Micron’s stock, reinforcing the Buy rating with an expected share price return of 25%.
In another report released on October 13, Morgan Stanley also maintained a Buy rating on the stock with a $220.00 price target.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MU in relation to earlier this year.