On Thursday, Piper Sandler showed a positive stance on Micron Technology (NASDAQ:MU), increasing the stock's price target to $130 from the previous $95 while maintaining an Overweight rating.
The firm's analyst cited several factors contributing to this optimistic outlook, including strong results and guidance from the company, which are expected to continue benefiting from market tailwinds through the current year and into 2025.
According to the analyst, a combination of tight supply, rising demand, the normalization of excess inventory, and the larger size of High Bandwidth (NASDAQ:BAND) Memory (HBM) die is leading to significant improvements in pricing. The analyst pointed out that the process of adding supply to the market is not a quick fix, often taking multiple quarters or even years, which suggests that current market dynamics may persist.
The firm also observed that some of the more challenging markets, such as data centers, are nearing a state of normalization. This trend, along with the expected durability of pricing strength in traditional memory and HBM, positions Micron Technology to benefit in the coming quarters.
Piper Sandler's report reflects a belief that Micron's favorable conditions are not just a short-term phenomenon but are likely to be sustained over an extended period. This perspective is supported by the firm's decision to raise their financial projections for the company.
In summary, Piper Sandler reiterated an Overweight rating for Micron Technology, emphasizing the company's potential for continued growth and success in the memory sector. The new stock price target of $130 represents a significant increase from the previous target, underlining the firm's confidence in Micron's performance and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.