MU - Micron Technology Stock Has 17% Downside According to 1 Wall Street Analyst
2024-03-19 12:27:24 ET
Micron Technology (NASDAQ: MU) stock had a terrific run last year, as investors anticipate a more favorable demand environment for memory chips translating into improving financial performance. Most analysts rate the stock a buy, but analysts at Morgan Stanley -- the only firm with a sell recommendation on Micron -- don't seem to see value in the shares. The firm maintained its underweight rating but recently bumped its price target to $78, representing about 17% downside from its current price.
However, the firm acknowledged near-term upside potential, as Micron is widely expected to report improving revenue in the fiscal second-quarter update scheduled for release on Wednesday.
Micron posted a slight year-over-year decline in revenue last quarter, but it's turning the corner. CEO Sanjay Mehrotra said generative AI technology is driving more demand for memory in servers, and the acceleration of AI solutions will benefit Micron's business over time.
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Micron Technology Stock Has 17% Downside, According to 1 Wall Street Analyst