Deutsche Bank analyst Sidney Ho weighed in today with a favorable report on shares of Micron Technology, Inc.(NASDAQ:MU), with a price target of $24, which implies an upside of 20% from current levels.
Ho explained, “We are raising our estimates on the back of continued strength in DRAM pricing despite the end of holiday season build. In addition, we see upcoming PC DRAM contract negotiations, the closing of the Inotera acquisition and F1Q results/F2Q guide as catalysts in the near term. With healthy and disciplined DRAM and NAND markets as a backdrop, we believe MU is poised to benefit in 2017 as its new products (20nm DRAM and 3D NAND) continue to ramp, with margin expansion likely to follow. Consequently, we raise our price target.”
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Sidney Ho has a yearly average return of 17.6% and a 72% success rate. Ho has a 7.6% average return when recommending MU, and is ranked #129 out of 4245 analysts.
Out of the 20 analysts polled by TipRanks, 15 rate Micron stock a Buy, 3 rate the stock a Hold and 2 recommend a Sell. With a downside potential of nearly 2%, the stock’s consensus target price stands at $20.47.