A boom time could be coming for shares of Micron Technology, Inc. (NASDAQ:MU) this year, according to one Wall Street firm. RBC Capital Markets has initiated coverage of the tech company with a price target that points to significant gains ahead.
CNBC passes along the firm’s take on Micron.
Micron shares will thrive this year as its diversified customer base allows to ride out any downturn in the memory chip market, according to one Wall Street firm.
RBC Capital Markets initiated coverage on Micron shares with an outperform rating, citing additionally the memory industry’s consolidation to just a few players.
Analyst Amit Daryanani has placed a price target of $80 on shares of Micron. In a note to clients, he explained why his firm is feeling so bullish about the company and its future prospects.
“Our bullish bias on Micron is predicated not on there being no more cycle but rather on our belief that the cycle(s) going forward will be more muted and less volatile,” Daryanani wrote. “Micron offers a unique way for investors to gain exposure to DRAM and NAND markets at what we view as attractive valuations.”
Micron Technology, Inc. shares rose $1.27 (+2.35%) in premarket trading Wednesday. Year-to-date, MU has gained 34.02%, versus a 1.89% rise in the benchmark S&P 500 index during the same period.