Japan’s leading financial and investment banking institution, Daiwa Securities, raised the Micron stock (NASDAQ: MU) price target on Wednesday (June 10) to $1,600. Analyst SK Kim maintained the buy rating for MU, signaling that the semiconductor giant could rally next. The optimism comes when the broader sector is facing corrections amid a string of sell-offs. The leading equity, which rose nearly 85% in the last week of May, has fallen 11.50% in June.
Despite the recent shake-up, Daiwa Securities analyst SK Kim highlighted that the ongoing correction could be a temporary blip and mentioned in his note to clients three points that could take Micron stock above $1,000 again. The three reasons he mentioned that could take MU up in value are:
- The high AI memory demand that Micron Technologies is able to meet, design, manufacture, and deliver to clients. This will keep the company going while still safely maneuvering minor blips.
- Its position as one of the big three dominant manufacturers of high-bandwidth memory (apart from SK Hynix and Samsung) keeps its revenues robust until the end of the decade.
- He mentioned Micron’s upcoming June 24 earnings as a catalyst that could drive prices up.
Also Read: Micron’s Two-Year Sellout Fueled a 918% Surge: Is MU Still a Buy?
Micron Stock Banking on the June 24 Earnings Call
The Daiwa strategist is also among the other analysts who have estimated that Micron stock could rally after June 24. The earnings call will dictate the next direction of MU, and Wall Street analysts have projected that it could beat market expectations. Wall Street expects the company’s revenue to reach $33.8 billion to $34.3 billion with an adjusted earnings per share (EPS) of between $19.31 and $19.63. The overall consensus remains positive and strong, which could lead to buying pressure.
If Daiwa Securities’ price prediction of $1,600 turns out to be accurate, investors can expect profits of nearly 80%. Therefore, an investment of $1,000 in Micron stock could turn into $1,800 if the target is achieved. That’s substantial returns with a significant uptick from its current price level. MU should be on the investor’s must-watch list due to the immense upside potential it carries.
Also Read: How High Can Micron Stock Go? Roundhill CEO Spots Massive Shift