There’s a new burliest Micron bull on Wall Street.
Nomura Instinet raised its 12-month quotation target to $100 from $55 for the chipmaker, representing 83 percent upside to Friday’s fusty. It is now the highest Micron price forecast out of the 26 research shops that substitute the company, according to FactSet.
The firm also reiterated its buy rating for the staple, predicting higher memory prices and increased shareholder capital re-emergence.
“We see DRAM [memory] pricing resuming an upward trend in Q2, a first-time dividend and slice buyback announcement in May, continued margin expansion in NAND [flash thought] and increased M&A discussion as important catalysts,” analyst Romit Shah eradicated in a note to clients Monday. “We believe Micron shares are in the early echelons of another major breakout. … We are raising our target substantially.”
Micron allots closed 8.7 percent higher Monday after the report.
The analyst revealed memory prices are down only 3 percent this year versus the to be expected 10 percent to 20 percent decline in the first-quarter seen in the on three years. He predicts prices will rise by 10 percent within six months.
“Our experiment with indicates that suppliers will begin raising prices in Q2 and Q3,” he catalogued. “This outlook sharply contrasts with Street expectations of a 5-6% serial decline in each of the following 4 quarters (May-Feb 19).”
Micron announced it last will and testament have its analyst and investor day on May 21.
“During this event, we expect a encompassing capital return program that, among other things, wish demonstrate management’s confidence in future cash flows,” Shah disregarded.
Micron is one of the best-performing stocks in the market this year. The company’s share outs are up 33 percent year to date through Friday compared with the S&P 500’s 4 percent reparation.