Micron upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank analyst Sidney Ho upgraded Micron Technology to Buy from Hold with a price target of $85, up from $65. The firm says DRAM prices started to improve at least one quarter ahead of its expectation on the recent demand strength for artificial intelligence servers, fueling the growth of HBM and DDR5. Recent checks with the supply chain suggest that the price increases are sustainable and should accelerate in the next two quarters given the limited supply growth, the analyst tells investors in a research note. As a result, Deutsche expects Micron to guide fiscal Q1 revenue and earnings above current Street estimates with commentary suggesting further improvement in the next few quarters. It sees Street estimates for the remainder of 2023 and 2024 “moving up meaningfully post-earnings.”