$130 price target and buy odds

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  • Shares of Micron Technology (NASDAQ:MU) received a price target of $130 from Needham & Company. These are the details.

Shares of Micron Technology (NASDAQ:MU) received a price target of $130 from Needham & Company. And Needham & Company analyst Rajvindra Gill reiterated a “Buy” rating on the shares.

Gill adjusted the rating after updating the model to include Micron’s new four-year crossover cycle targets at the company’s analyst day. And these new targets raise the floor and ceiling of its earnings and FCF guidance from the previous trough/peak in EPS of $2.82/$11.96 to an expected high of $5.75/$19.00.

“We believe the memory industry is intrinsic to the digital economy. Memory requirements increase exponentially as the number of parameters increases with artificial intelligence. More memory is needed for smartphones as video and streaming expand,” Gill wrote in a research note. “Autonomous driving at higher levels requires >10GB of DRAM and 1TB of NAND in each car. Memory and storage growth is now fueled by diverse end-market demand, providing better visibility and resilience than in previous rounds. Coupled with industry sourcing discipline and the increasing complexity of industry sourcing, this is creating favorable sourcing dynamics leading to cross-cycle margins and metrics. Higher FCFs.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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