MU Stock Price: $70 Target By Deutsche Bank

By Amit Chowdhry ● November 28, 2020
  • Recently, Micron Technology, Inc. (NASDAQ: MU) received a price target increase from $60 to $70 by Deutsche Bank. These are the details.

Recently, Micron Technology, Inc. (NASDAQ: MU) received a price target increase from $60 to $70 by Deutsche Bank. Deutsche Bank analyst Sidney Ho is also maintaining a “Buy” rating on the shares. 

In a research report, Ho said that Micron is expected to be a solid recovery pick as the economy starts recovering from the global pandemic. Demand drivers such as data centers, 5G smartphones, and gaming will accelerate the growth of Micron. Ho also pointed out that Micron is well-positioned for CY21 (calendar year 2021). 

Micron Technology is known as being a leading supplier and manufacturer of memory and storage used in a wide range of electronic devices ranging from PCs to smartphones. And the company is currently number three in market share for memory/storage shipments after Samsung and SK Hynix. DRAM currently makes up about two-thirds of the company’s total revenue with NAND making up most of the rest of the revenue.

DRAM is known for providing high-speed data storage and retrieval. And NAND flash products are electrically rewritable and nonvolatile memory that retains data when power is turned off. This makes NAND ideal for mass-storage uses — specifically for solid-state drives, which have started to displace traditional hard disk drives.

DRAM and NAND are both promising for the future as SSDs are expected to be used in the majority of PCs and data centers as well as higher memory and storage content in smartphones. And AI and

autonomous vehicles will also require substantial DRAM and NAND capacities.

Deutsche Bank is not the only brokerage to increase its price target on Micron. Mizuho analyst Vijay Rakesh recently increased the price target from $56 to $70. And Morningstar equity analyst Abhinav Davuluri, CFA recently increased the target price to $50 per share from $48. And in an analyst rating consensus of Micron stock with 33 ratings, 76% say buy, 21% say hold, and 3% say sell.

Disclosure: I am an MU shareholder