Robert W. Baird analyst Tristan Gerra reiterated a Buy rating on Micron (MU – Research Report) today and set a price target of $130.00.
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Tristan Gerra has given his Buy rating due to a combination of factors that suggest a promising outlook for Micron. A recent field trip to Asia has reinforced the view that the current valuation of Micron’s stock presents a compelling opportunity for investors. There is an anticipated increase in market share for Micron in high-margin AI-related architectures, specifically HBM and LPDDR5, which could positively impact revenue and gross margins.
Furthermore, a surge in AI-related orders in China is expected to alleviate some pricing pressures on DRAM, with a more favorable pricing environment anticipated as the year progresses. The normalization of smartphone DRAM inventory levels in China and expected improvements in NAND flash pricing by the end of the year further support this positive outlook. The analyst reiterates an Outperform rating with a price target of $130, based on projected earnings and market conditions, though potential risks such as pricing stabilization delays and macroeconomic factors are acknowledged.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $125.00 price target.
Based on the recent corporate insider activity of 97 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.