This Top Analyst Presses the ‘Buy’ Button on Micron (MU) Following Flash Memory Summit 2018
Mizuho analyst Vijay Rakesh recently attended the Flash Memory Summit 2018 in Santa Clara, CA, where he participated in panel discussions and private events with industry insiders. Specifically, the analyst had the opportunity to catch up with Micron (NASDAQ:MU) management.
Rakesh noted, “We believe a combined portfolio of DRAM and NAND positions MU better as DRAM pricing remains stable to up and most pricing negotiations already completed for 3Q18. We believe MU could continue to drive strong GM as DRAM pricing and inventory remain tight, 1x DRAM cross-over only YE2018 driving better costs / margins, and lower 64-L NAND costs still not fully reflected in NAND or overall corporate GM. A strong eMCP DRAM+NAND presence in mobile combined with strong adoption positions MU for less downside from NAND pricing.”
As such, Rakesh reiterates a Buy rating on Micron with a price target of $72, which implies an upside of 35% from current levels.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vijay Rakesh has a yearly average return of 27.1% and a 69% success rate. Rakesh has a 56.3% average return when recommending MU, and is ranked #37 out of 4850 analysts.
The outlook from the Street is extremely bullish on the chip giant with TipRanks analytics showcasing MU as a Strong Buy. 19 analysts have rated the stock a Buy versus 4 who issued a Hold rating in the last 3 months. Meanwhile, their average price target of $83.29 indicates 56% upside potential from current levels.
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