Brian Chin, an analyst from Stifel Nicolaus, maintained the Buy rating on Micron (MU – Research Report). The associated price target remains the same with $130.00.
Brian Chin has given his Buy rating due to a combination of factors that suggest a positive outlook for Micron’s future performance. Despite some near-term challenges, such as softer memory pricing and a less favorable product mix, the company is expected to see improvements in NAND pricing starting in the second quarter of the calendar year. This is supported by increased demand from China and a potential seasonal recovery in bit demand, which could lead to a re-acceleration of key financial metrics in the fourth quarter.
Furthermore, Micron is making significant progress in its high-bandwidth memory (HBM) technology, which is expected to contribute positively to its revenue. The company is also advancing its production schedule for its Hiroshima facility, indicating progress in its DRAM technology. These developments, along with a potential tightening of memory supply and improved pricing momentum, underpin the optimistic outlook and justify the Buy rating.
In another report released yesterday, Citi also reiterated a Buy rating on the stock with a $150.00 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.