Citi analysts decided to maintain their positive outlook on Micron Technology (NASDAQ:MU) by reiterating a Buy rating and setting a price target of $85.00. The bank’s rationale for this stance is based on recent developments in the DRAM market. The analysts highlighted TrendForce’s upward revision of their Q4/23 DRAM price forecast, which shifted from a projected flat quarter-on-quarter change to a 3%-8% sequential increase. This change was attributed to production cutbacks by Samsung.
Furthermore, the analysts pointed out that TrendForce anticipates further DRAM price increases in the first quarter of 2024, estimating a rise of 0-5% sequentially. In light of these developments, they believe that the DRAM market is on the cusp of an upswing.