NEW YORK (TheStreet) -- Shares of Micron Technology (MU) rose 2.59% to $32.50 in morning trading Thursday after Deutsche (DB) renewed coverage on the company with a "buy" rating and a $40 price target.
The firm cited the company's increased profitability and free cash flow generation in a research note issued Thursday.
"Micron's shares have significantly outperformed SOX for the past two years; however, we believe there is more headroom for the stock once investors feel more confident that the memory industry has permanently changed and that the company's improved profitability and free cash flow generation are sustainable," Deutsche wrote. "This realization should yield an improved valuation."
Separately, TheStreet Ratings team rates MICRON TECHNOLOGY INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICRON TECHNOLOGY INC (MU) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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."
Highlights from the analysis by TheStreet Ratings Team goes as follows: