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Barclays sees recovery materializing for Micron Technology

EditorHari Govind
Published 15/09/2023, 01:52 am
© Reuters
MU
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Barclays analysts raised the Micron Technology (NASDAQ:MU) price target to $80 from $75 per share in a note Thursday, maintaining an Overweight rating on the stock.

The analysts said in his MU earnings preview that a recovery for the company is starting to materialize despite the China bans.

"Positive commentary on both the pricing and demand environment surprised us over the past several weeks after our Asia checks had indicated that the impact of the CAC ban would exceed the LDD% highlighted by the company," they wrote.

"It wasn't surprising to us that Hynix 'shockingly' was found in the Mate 60 Pro as we think this could ultimately be a share boon for Samsung/Hynix in Mobile, not just a 'critical infrastructure' ban," they added.

The analysts said the firm was "a bit surprised" by how quickly Micron was able to offset the ban without a material pricing impact, while they also noted the company has sounded materially better at conferences.

"We raise our outlook for both bits and pricing and move slightly ahead of the Street for November and raise CY24."

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