Today, shareholders of Micron (NASDAQ:MU) are smiling ear to ear after the chip maker received the selection of “Top Pick” at Evercore ISI. Shares of MU stock are up 8% today, making it the stock’s best performing day since Nov. 16, 2020.
Analyst C.J. Muse of Evercore ISI has high expectations for MU stock. Muse noted that the prices for dynamic random-access memory (DRAM) are likely to bottom out in the first half of 2022. However, since DRAM prices have yet to do so, Muse rationalizes that investors are still hesitant about MU stock. Once the price actually bottoms out, investors will pour money into stocks like Micron in a “fast and furious” manner. For this reason, Muse has set a $100 price target on MU stock, representing a 20% upside from current prices.
“It is clear that the tides are shifting, with pricing decline expectations into 1HCY22 becoming ‘less bad,’ estimates likely bottoming in 1H22, and green shoots arising from PC constraints elsewhere easing, and hyper-scale capex spend likely improving before year end. Thus, we think it is game on for memory.”
According to TipRanks, C.J. Muse has a 69% success rate and an average return of 27.3% over a one-year period. Muse is ranked 724 out of the 15,943 experts that TipRanks tracks.
Let’s take a look at what other Wall Street analysts think about MU stock.
MU Stock: Analyst Price Predictions
- J.P. Morgan has a price target of $100. Analyst Harlan Sur noted that “while the negative sentiment around the memory sector over the past several months has led memory stocks to underperform, we believe any concerns about a downturn are overblown.” Sur expects Q4 revenue and earnings per share (EPS) to be in line with company guidance.
- Morningstar has a price target of $90. Analyst Abhinav Davuluri notes that Micron operates in a highly competitive and cyclical market and that its ability to maintain long-term profitability will be a concern going forward.
- Goldman Sachs has a price target of $88. Analyst Toshiya Hari mentioned that Micron’s decision to possibly increase inventory and tendency to guide estimates conservatively could lead to an unimpressive Q1 2022 outlook compared to Wall Street estimates.
- Bernstein has a price target of $58, a Wall Street low. Analyst Mark Li believes Micron is an extremely cyclical stock that is currently trading in a down cycle. The analyst believes the down cycle won’t end until late 2022. The price target represents a 30% downside from current prices.
- Finally, Micron has an average price target of $98.38 among 35 firms covering the company.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
