Micron Technology got a price target boost from KeyBanc, on signs of stabilization.
KeyBanc analyst Weston Twigg reiterated his overweight rating on the semiconductor company’s stock. The KeyBanc analysts increased their price target to $58 from $45.
KeyBanc analysts expect memory trends to improve through 2020 excluding a recession, as indicated by Twigg wrote in a note. The analyst believes that Micron is well-positioned to reap the benefits of long-term tailwinds related to compute and storage. Twigg also suggested that DRAM, which accounts for roughly 70% of the company’s revenue, is likely to be a stronger market over the long-term compared to NAND, due to less competition, high barriers to entry, and supply constraints from scaling limitations.
Twigg also expects both NAND and DRAM inventories to drop during the second half of this year, with NAND pricing likely to steadily increase through that period and DRAM pricing likely to stabilize by the end of the year.