This Top Analyst Stands Behind Micron (MU) Ahead Of Tomorrow’s Print


RBC Capital analyst Amit Daryanani is one of Micron’s (NASDAQ:MU) biggest bulls, and he is also one of the top analysts rated who cover the stock. Investors who listened to Daryanani over the past year have made 27 percent on their Daryanani bets, according to analyst ranking service TipRanks.

Today, Daryanani reiterated an Outperform rating on Micron shares, with a price target of $80, which implies an upside of 37% from current levels.

The chip giant is about to release its fiscal third-quarter report tomorrow after market close, and Daryanani expects the results to be largely in line with revised guide that the company provided on its Analyst Day ($7.7B- $7.8B/$3.12-$3.16). Looking ahead, Daryanani believes Micron should comfortably be able to guide revenues up q/q (~$8.00B) and EPS flat to up on a q/q basis.

Being a commodity stock, Micron’s revenue has been fueled by a robust demand and a favorable pricing environment in NAND and DRAM chips. From a DRAM perspective, the analyst thinks pricing should be up modestly in Aug- qtr and stable in Nov/Dec-qtr time-frame, with demand likely positioned to remain stable though mix could be more mobile heavy (AAPL content uptick). On the NAND side, Daryanani believes price declines could sustain in H2:18 as lower NAND pricing doesn’t appear to drive uptick in demand for NAND bits.

Net net, investors should focus at NAND and DRAM pricing and any indications regarding cycle turns

The word on the Street rings largely bullish on this chip giant, backing Daryanani’s confident move, with TipRanks analytics demonstrating MU as a Buy. Out of 24 analysts polled in the last 3 months, 18 are bullish on Micron stock, 5 remain sidelined, and 1 is bearish on the stock. With a return potential of nearly 34%, the stock’s consensus target price stands at $77.50.

As of this writing, Micron shares are dipping 1.3% to $57.68.

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