TD Cowen analyst Krish Sankar has maintained their bullish stance on MU stock, giving a Buy rating on March 14.
Krish Sankar’s rating is based on a combination of factors that suggest a cautiously optimistic outlook for Micron. One of the key reasons for the Buy rating is the collective push by suppliers to increase DRAM and NAND pricing, which could potentially lead to a higher earnings per share (EPS) outlook for Micron in the coming years. However, Sankar remains prudent due to the current weak demand, particularly in the Mobile and PC sectors, which could make it challenging to sustain higher prices.
Despite these challenges, there are positive indicators that support the Buy rating. Notably, High Bandwidth Memory (HBM) pricing is expected to remain stable, with a significant market opportunity projected for the next year. Additionally, Micron’s increasing market share at AWS and the high quality of its HBM3e product are promising signs. The shift in market conversations towards the potential for double-digit pricing increases further bolsters the optimistic view on Micron’s future performance.
In another report released on March 14, Maybank also upgraded the stock to a Buy with a $145.00 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.
Questions or Comments about the article? Write to editor@tipranks.com