Citi is keeping its optimistic view on Micron (MU, Financial) ahead of its fiscal Q2 results, despite an expected guidance miss. Analyst Christopher Danely holds a Buy rating and a $150 price target, signaling a solid 49% upside from the stock's current price. While Micron's outlook might not meet Wall Street's expectations due to issues like a weak consumer mix and NAND underutilization, there are reasons to stay bullish, especially with some positive developments on the horizon.
DDR5 memory pricing is on the rise, up nearly 8% year-to-date, marking the biggest jump since Q1 2024. This price action supports the belief that DRAM pricing will pick up in Q2 2025, positioning Micron for a potential rebound. Add to that the growing demand for high-bandwidth memory driven by AI, and there's a solid case for a recovery.
The broader market sentiment is still positive, with 32 out of 38 analysts giving Micron a Buy rating. Even if the stock faces some turbulence in the near term, investors are likely to see upside as DRAM pricing stabilizes and demand continues to build throughout 2025. Patience here could pay off.
