Barclays says Micron stock ‘works’ despite weak end markets

Barclays analyst Tom O’Malley says Micron’s most major end markets are taking longer to recover, "which is deepening the trough." However, the China threat appears off the table, competition is acting rationally and an improved balance sheet allows for flexibility through this down cycle, the analyst tells investors in a research note. The firm thinks the stock "works" despite the reset estimates, saying the name plays into the artificial intelligence theme, which is a real driver for the data center business into the next fiscal year. It keeps an Overweight rating on Micron shares with a $70 price target.