MU Stock Has Gained 46% This Year – But Wedbush Sees A Further 23% Upside

The firm cited stronger-than-anticipated momentum in the memory market, boosting confidence in Micron’s upcoming earnings and outlook.

• Analyst Matt Bryson said Micron's Q2 outlook now appears more favorable than previously anticipated.
• Micron has been included in the S&P 500 index, effective March 23. 
• The company has guided to Q2 revenue of $18.7 billion and adjusted earnings per share of $8.42.

Wedbush analyst Matt Bryson has increased the price target for Micron Technology Inc. to $500 from $320, maintaining an ‘Outperform’ rating on the stock ahead of its second-quarter earnings on March 18. 

The new price target implies a potential 23% upside to the stock’s closing price on Thursday. 

Positive Momentum In Memory Chips

Wedbush highlighted stronger-than-expected trends in the memory market, signaling optimism for Micron's (MU) upcoming earnings and guidance. 

According to Bryson, Micron's second-quarter (Q2) outlook now appears more favorable than previously anticipated, with expectations for both the NAND and DRAM segments to rise by 30% to 50%. The analyst emphasized that industry discussions following the Chinese New Year have not indicated any slowdown in memory demand, suggesting continued growth.

Micron’s stock traded over 4% higher on Friday. 

S&P 500 Inclusion And Q2 Outlook 

Even though memory stocks have cooled lately, Micron has been drawing fresh interest as investors feel optimistic about the company joining the S&P 500 index, effective March 23. 

The company forecast Q2 revenue of $18.7 billion, plus or minus $400 million, compared with analyst expectations of $19.09 billion. Micron also guided to adjusted earnings of $8.42 per share, plus or minus $0.20 in Q2, compared with consensus estimates of $8.58, according to Fiscal AI data. 

What Are Stocktwits Users Saying? 

On Stocktwits, retail sentiment around the stock changed to ‘neutral’ from ‘bearish’ territory the previous day amid ‘normal’ message volume levels. 

A Stocktwits user said Micron has been steadily growing their net worth.

Another bullish user called the stock the ‘safest and best’ investment. 

MU stock has gained over 341% in the last 12 months. 

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