Analysts at FBN Securities initiated coverage on Micron Technology (MU - Get Report) with an "outperform" rating and $45 price target Monday, saying that the company is poised to benefit from lower volatility in pricing. 

The firm believes that even though the company is near peak gross profit margins of 48% that the change in economics in the DRAM and NAND chip markets will benefit the company. 

"Consolidation in the DRAM market leading to better pricing dynamics, smaller peak-to- trough declines, and improving margins for the major players," analyst Shebly Seyrafi wrote. "Note that the top three players (Korean leaders Samsung and SK Hynix along with Micron) grew their combined share from below 60% in 2007 to 95.0% in CQ2 2017."

Micron shares were up 1.66% to $32.99 in midday trading Monday. 

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