Story updated at 9:50 a.m. to reflect market activity.
Shares of Micron gained 3% to $24.72 in morning trading.
Analysts Sundeep Bajikar and Mark Lupacis estimate that DRAM gross margins increased by about 4,000 bps in the last 5 quarters, driving profitability. "We expect strong DRAM profitability to continue," the analysts wrote. "Additionally, we expect a combination of large Cloud SSD demand and completion of Micron's product quals to translate into a profitability tailwind in NAND. Reit. Buy."
The price target increase comes one day after Micron beat analysts' estimates in its second-quarter results.
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Separately, TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."