Following Micron Technology, Inc. (NASDAQ:MU) rallying with a consistently strong performance in memory, Morgan Stanley analyst Joseph Moore remains bullish on the chip giant and its memory outlook. As such, Moore reiterates an Overweight rating on shares of Micron while raising the price target from $18 to $20, which represents a nearly 21% increase from where the stock is currently trading.

The analyst highlights that both DRAM and NAND performed better than initially anticipated for quarter-to-date, especially when considering MU’s modest guidance that commenced the quarter. Though at one point Moore notes he was “pounding the table on the stock at $10,” he draws a distinction that he is not now despite the solid performance, expecting for a more gradual outperformance now that MU has revealed advantages from DRAM and NAND cost reduction.

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“We still like Micron stock, but with the recent rally we’d argue the stock discounts significant improvement in commodity pricing. Upside from here will come from execution improvement around 2 key manufacturing transitions, which we expect over the next year,” Moore asserts.

However, Moore does comment he waits to see if operational improvement will be able to drive increased momentum to the stock. As the analyst concludes, “We’re not calling for the company to move to a best in class cost structure, we simply need to see the company gain a steadier footing in both technologies. We expect to see some progress from this earnings call, but the full benefits of these technology shifts will take several quarters to unfold.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, four-star analyst Joseph Moore is ranked #634 out of 4,129 analysts. Moore has a 57% success rate and realizes 6.4% in his annual returns. When recommending MU, Moore earns 42.9% in average profits on the stock.

TipRanks analytics demonstrate MU as a Buy. Based on 24 analysts polled in the last 3 months, 18 rate a Buy on MU, 4 maintain a Hold, while 2 issue a Sell. The consensus price target stands at $17.21, marking a 3% upside from where the shares last closed.Screen Shot 08-30-16 at 08.38 PM