In a research report published on Friday, Topeka Capital analyst Suji Desilva upgraded shares of Micron Technology, Inc. (NASDAQ:MU) from Hold to Buy, while raising the price target to $34 (from $30), which represents a potential upside of 39% from where the stock is currently trading. The increase rating and price target come after hosting an investor site visit for institutional investors at the company’s facility.

Miller noted, “Despite concerns regarding PC demand and related DRAM pricing, we came away incrementally constructive on the opportunity. From our recent checks, we believe MU has opportunity in a C2H15 PC upgrade cycle driving stabilizing/improving DRAM pricing. Specific to the MU opportunity, we were encouraged by: 1) likely outsized DRAM cost per bit improvement relative to competitors, 2) steady TLC 3D NAND progress that can drive a demand inflection, and 3) continued commitment to capital returns while maintaining a competitive capex level.”


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