Micron Technology has a bright outlook for 2024 thanks to a recovering memory-chip market, a Wall Street analyst said in a report. Micron stock jumped on the news Monday.
UBS analyst Timothy Arcuri reiterated his buy rating on Micron stock and raised his 12-month price target to 90 from 76.
On the stock market today, Micron stock surged 3.8% higher to close at 77.79.
In a note to clients Sunday, Arcuri said he expects "strong guidance" from Micron when its delivers its quarterly report later this month. He predicts Micron stock will "continue its grind higher in calendar 2024."
Micron Stock Is A Recent Breakout
On Nov. 3, Micron shares broke out of a flat base at a buy point of 72.31, according to IBD MarketSmith charts. Micron stock is now extended beyond the 5% buy zone, based on IBD trading principles.
On Nov. 28, Micron raised its guidance for revenue and earnings in its fiscal first quarter that ended Nov. 30. The Boise, Idaho-based company cited an improved supply and demand balance and better pricing. Micron plans to release its fiscal Q1 results on Dec. 20.
Contract prices for DRAM and Nand memory chips are seen rising over 15% in the calendar fourth quarter from the third quarter, Arcuri said. Indications point to prices rising at least 10% in the first quarter from the December quarter, he said.
Micron stock has a middling IBD Composite Rating of 56 out of 99, according to IBD Stock Checkup.
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