NEW YORK (TheStreet) -- Shares of Micron Technology (MU) rose to a 52-week high of $34.85 on Monday after analysts were bullish on the stock following the semiconductor company's fourth-quarter earnings report late last week.
Micron expects sales growth of its dynamic random-access memory (DRAM) chips to increase in the low single digits, far greater than analysts' expectations of a 5% to 10% decline. The forecast led to bullish reports from multiple analysts.
Deutsche Bank reiterated its "buy" rating and $40 price target and noted "limited industry supply growth is driving less price volatility." Profit margins in the segment rose slightly in the quarter and Deutsche expects they could widen further in the future.
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Jefferies noted "bears have consistently worried about falling DRAM prices," but the firm believes a "permanent change" is coming in the industry thanks to consolidation and slowing technological progress.
The stock was up 1.73% to $34.42 at 11:44 a.m.
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, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."