Micron Technology (NASDAQ: MU) stock price soared after reports of a positive outlook for chip stocks. In addition, higher price targets from market analysts are helping in sustaining the upside momentum. Its shares crossed $50 physiological level; the stock price is currently trading around $52.
Several market analysts are predicting that chips prices and inventories bottomed in the second half of 2019. This is because of lower supplies and strong pricing from all the key players in the semiconductor industry. Micron Technology stock price is likely to gain momentum in fiscal 2020 in the analyst’s view.
Analysts Raised Micron Technology Stock Price Target
The majority of analysts and rating agencies have lifted Micron’s target for 2020. For instance, Longbow Research provided a $70 price target with a Buy rating. Its analyst Nikolay Todorov believes MU shares are likely to generate positive momentum in the following months, thanks to the broader market outlook.
RBC, on the other hand, claims memory pricing has already reached the bottom. Its analyst Mitch Steves says, “We are buyers of memory at this point and believe we’ll be past inventory issues by the end of the year.” The analyst is forecasting a steady increase in pricing for both NAND and DRAM. The firm sets a $64 price target for MU shares.
Morgan Stanley argues that strengthening memory chip trends is offering short-term support to share prices. MS analyst Joseph Moore said, “The news flow should be positive in the short term, and we do think there is still a positive trading opportunity in the stock in the next 3 months.”
Financials are Strengthening
The company has been generating strong financial numbers despite a challenging market environment. Its revenue for the final quarter of 2019 increased to $4.87 billion compared to $4.79 billion in the previous quarter.
Moreover, its cash generation potential is permitting it to invest in growth opportunities in the coming days. The company has generated an operating cash flow of $13 billion in 2019. Overall, several factors are supporting the upside trend for Micron Technology’s stock price.
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