Today, the shareholders of Micron (NASDAQ:UM) are smiling from ear to ear after the chipmaker receives the ‘Top Pick’ selection at Evercore ISI. MU’s shares were up 8% today, making it the best-performing day for the stock since November 16, 2020.
Evercore ISI analyst CJ Muse has high expectations for MU stocks. Muse noted that dynamic random access memory (DRAM) prices are expected to bottom in the first half of 2022. However, as DRAM prices have yet to hit that target, Muse rationalizes that investors are still hesitant about it. from MU’s stock. Once the price hits its lowest point, investors will invest money in stocks like Micron in a “fast and furious” fashion. For this reason, Muse has set a price target of $ 100 for MU stock, which is a 20% increase from current prices.
“It is clear that the tides are shifting, with expectations of lower prices towards 1HCY22 becoming ‘less bad’, estimates are set to bottom in 1H22, and green shoots resulting from PC constraints elsewhere easing, and spending on large-scale investment likely to improve before the end of the year. So, we think it’s a memory game.
According to TipRanks, CJ Muse has a success rate of 69% and an average return of 27.3% over a period of one year. Muse is ranked 724 out of 15,943 experts who TipRanks tracks.
Let’s take a look at what other Wall Street analysts think of the MU stock.
MU stock: analysts’ price forecasts
- JP Morgan has a target price of $ 100. Analyst Harlan Sur noted that “while negative sentiment around the memory sector over the past several months has led memory stocks to underperform, we believe any concerns about a slowdown are overblown.” Sur expects fourth quarter sales and earnings per share (EPS) to be in line with company guidance.
- The morning star has a target price 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 target price of $ 88. Analyst Toshiya Hari mentioned that Micron’s decision to possibly raise inventories and the tendency to guide estimates conservatively could lead to an unimpressive outlook for the first quarter of 2022 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 bearish cycle. The analyst believes the bear cycle will not end until the end of 2022. The price target represents a 30% drop from current prices.
- Finally, Micron has an average price target of $ 98.38 among 35 companies covering the company.
At the time of publication, Eddie Pan had (directly or indirectly) no position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, submitted to InvestorPlace.com Publication guidelines.