Micron (MU) was in focus on Friday as Stifel upped its price target on the memory maker ahead of its next quarterly earnings report, set for Dec. 17.
Shares fell fractionally in premarket trading.
“Memory has been on a tear,” analysts at the firm wrote in a note to clients. “Further strengthening in AI infrastructure demand has proven a tipping point, and memory prices are rallying hard into yr-end. Next week, we expect Micron to report and guide meaningful to the upside to its F1Q(Nov) results and F2Q(Feb) outlook.”
The analysts continued: “Buyer capitulation is a good thing. Yet, the classic cyclical concern is capacity additions/supply growth accelerating to capitalize on current conditions. As yet, we believe suppliers are instead prioritizing 1) full support of higher-value cloud memory products/customers, while also 2) re-establishing a higher, more profitable price/Gb for smartphone and client-PC products.”
The analysts reiterated their Buy rating on Micron and upped their price target to $300 from $195.
A consensus of analysts expect Micron to earn $3.90 per share on $12.82B in revenue.
