Micron Technology (MU, $47.64) gets rating boost from Morgan Stanley, on inventory demand
Micron Technology shares got a rating upgrade by Morgan Stanley, on hopes for near-term boost from rising DRAM prices.
Morgan Stanley analysts raised their rating on the computer memory/data storage company’s stock to equal weight from underweight. Joseph Moore indicated in a note that DRAM prices are rising as trade tensions are spurring companies to accumulate inventory, leading him to revise the previous rating on Micron. Spot prices of DRAM have rallied over 20% in the last three weeks, according to Moore.
However, Moore believes that DRAM market would be largely oversupplied in the longer-term. Once global geopolitical risks subside, DRAM and NAND prices will likely start dropping once again, according to Moore. This could push Micron’s cash flow into negative territory and its share price at around book value, as indicated by the analyst.
But Moore also mentioned another, more positive scenario for Micron. If cloud and smartphone inventory builds reaccelerate, Micron could experience tailwinds in 2020 and its stock could touch new highs – according to Moore.
MU in upward trend: price may jump up because it broke its lower Bollinger Band on December 19, 2024
MU may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 35 cases where MU's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on January 06, 2025. You may want to consider a long position or call options on MU as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MU just turned positive on January 06, 2025. Looking at past instances where MU's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where MU advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
MU moved below its 50-day moving average on January 08, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MU declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.365) is normal, around the industry mean (12.192). P/E Ratio (28.464) is within average values for comparable stocks, (57.207). Projected Growth (PEG Ratio) (0.252) is also within normal values, averaging (3.156). Dividend Yield (0.005) settles around the average of (0.021) among similar stocks. P/S Ratio (3.836) is also within normal values, averaging (50.875).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a manufacturer of advanced semiconductor solutions such as DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components and memory modules
Industry Semiconductors