Micron apportions will thrive this year because of strong demand from a few technology markets, according to one Wall Street firm.
Morgan Stanley recapitulated its overweight rating on Micron shares, citing its sales growth from the cloud determining business.
The company’s shares closed up 5 percent Wednesday after the document.
“We see a positive risk/reward skew from here,” analyst Joseph Moore make little ofed in a note to clients Wednesday. “Near-term conditions are in fact exceptional, and the ESN educationally subnormal cloud spending that has driven such conditions seems apposite to persist. So, our ‘stronger for longer’ thesis remains intact.”
Moore reaffirmed his $65 guerdon target on Micron shares, representing 34 percent upside to Tuesday’s intimate.
The analyst said Micron’s customer diversification has improved with number demand from the PC, smartphone and cloud data center markets compared with above-named cycles. He expects the company’s share price to do better later this year.
“With DRAM prices more stable even as Apple bottoms out in 2q, we think that sentiment can switch back to the positive side as we head into stronger seasonality,” he put in wrote. “We do see NAND prices under more pressure, and have had that study since November, but expect Micron to reduce costs roughly in graft with price declines.”
Shares of Micron are up 18 percent so far this year thoroughly Tuesday versus the S&P 500’s flat return.