Piper Sandler Analyst Bullish on Micron Technology, Raises Price Target by 35.7%

Piper Sandler's Harsh Kumar upgraded their rating on Micron Technology (NASDAQ: MU) from Hold to Strong Buy on January 4, 2024. The analyst also raised their price target by 35.7% from $70 to $95.

Kumar's positive outlook for Micron Technology is based on several factors. Firstly, the analyst believes that prices in the market are moving up, which is a positive development for the company. Additionally, Kumar highlights the emergence of High Bandwidth Memory (HBM) in the first half of 2024 as another catalyst for Micron Technology's growth.

In addition to these factors, Kumar predicts that the DRAM and NAND markets will experience price acceleration. This is due to normalized inventory levels and recent supply decreases. Furthermore, the analyst expects that production cuts by Micron Technology's South Korean competitors will help achieve a balance between supply and demand.

Kumar also provided insights into the potential future performance of Micron Technology. The analyst suggests that upon reaching peak earnings, the book value of the stock could reach $50 to $60 per share, selling at a multiple of 2.5x to 3.0x.

On the same day, January 4, 2024, Kumar made changes to the ratings and price targets of other companies in their portfolio. Piper Sandler's Harsh Kumar lowered their price target on Apple Inc by -6.8%, from $220 to $205, and downgraded the stock from Strong Buy to Hold. Similarly, Kumar lowered their price target on Akoustis Technologies Inc by -50%, from $2 to $1, and downgraded the stock from Strong Buy to Hold.

Currently, 85.7% of top-rated analysts rate Micron Technology as a Strong Buy or Buy. 9.5% consider it a Hold, while 4.8% either recommend or strongly recommend selling the stock.

In terms of performance, since Micron Technology's last quarterly report on November 30, 2023, the stock price has increased by 8.7%. Year-over-year, the stock has shown strong growth, with a 52.6% increase. During this period, Micron Technology has outpaced the S&P 500, which has risen by 21.7%.

Piper Sandler analyst Harsh Kumar is highly regarded, ranking in the top 2% of Wall Street analysts according to WallStreetZen. With an average return of 17.6% and a 65.8% win rate, Kumar specializes in the Technology and Healthcare sectors.

Micron Technology, Inc., a global company, designs, manufactures, and sells memory and storage products. It operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. The company offers a range of memory and storage technologies, including DRAM products, NAND products, and NOR memory products. Micron Technology serves various markets, including cloud server, enterprise, client, graphics, networking, smartphone, automotive, industrial, and consumer. The company markets its products through various channels, including direct sales, independent representatives, distributors, retailers, and web-based customer direct sales. Micron Technology was founded in 1978 and is headquartered in Boise, Idaho.

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