On Wednesday, shares of Micron (MU - Get Report) tried desperately to get back into positive territory. Despite announcing a $1 billion stock offering to pay down high interest debt, investors weren't completely bailing on the stock. While Micron came up short of finishing in the green Wednesday, it's off to another bumpy start Thursday, down 0.57% at the open.
But at least it has another analyst in its corner.
Barclays analyst Blayne Curtis reiterated his overweight rating, but boosted his price target to $60 from $40. With Micron stock trading near $41 early Thursday, that implies almost 50% upside from current levels.
Curtis argues that DRAM trends look good "into next year," while Micron should continue to have strong pricing power. In other words, demand should remain high and supply should be tight, the ultimate win-win for Micron. Further, Curtis says ramping smartphone production and an "insatiable demand" from datacenter customers should keep NAND demand high and supply tight.
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On Wednesday, TheStreet's Jim Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, said investors will likely be "clamoring" for Micron's new stock offering. While the bullishness is a little concerning, Micron remains in a very favorable situation and should continue to report good numbers, he reasoned.
Additionally, Needham's Rajvindra Gill slapped a $76 price target on Micron, implying more than 110% upside at the time. This was a few weeks ago and Micron has since appreciated, but even at current prices it still implies more than 85% upside.
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