Micron technology (IN) has a bright outlook for 2024 thanks to the recovery of the memory chip market, a Wall Street analyst said in a report. Micron stock jumped on the news Monday.
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UBS analyst Timothy Arcuri reiterated his Buy rating on Micron stock and raised his 12-month price target to 90 from 76.
In the morning discussions on the stock market todayMicron stock jumped 3.3% to 77.40.
In a note to clients on Sunday, Arcuri said he expects “strong guidance” from Micron when it delivers its quarterly report later this month. He predicts that Micron stock will “continue to advance through calendar year 2024.”
Micron Stock Is a Recent Breakout
On November 3, Micron shares broke out flat base has point of purchase of 72.31, according to IBD Market graphics. Micron stock now extends beyond 5% buy zonebased on Principles of IBD Trading.
In November. 28, Micron raised its forecast for revenue and profit during its first fiscal quarter ended November 30. The Boise, Idaho-based company cited a better balance of supply and demand and better pricing. Micron plans to report its first quarter results on December 20.
Contract prices for DRAM and Nand memory chips are expected to increase more than 15% in the fourth calendar quarter compared to the third quarter, Arcuri said. Indications are that prices will rise by at least 10% in the first quarter compared to the December quarter, he said.
Micron stock has an average price IBD Composite Rating 56 out of 99, according to Checking ITN stocks.
Follow Patrick Seitz on @IBD_PSeitz for more articles on consumer technology, software and semiconductor stocks.
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