Why Is Credit Suisse Raising The Price Target On Micron Technology?
In a note released Wednesday morning, Credit Suisse analyst J. Pitzer explained the reasons behind the $20 price target increase from $30 to $50 for Micron Technology (NASDAQ: MU).
Pitzer emphasized the main reason for the raise is improving Enterprise demand, especially for DRAM. He noted that Enterprise has not been an incremental driver of memory demand since 1994-95, and estimated if the levels of DRAM as a percent of GDP were to return to those levels, Micron would earn $17 per share.
While Pitzer is not ready to make that prediction yet, he noted that the ecosystem is showing similar dynamics.
Pitzer wrote, "Yesterday's intra-day announcement by Oracle of a soon to be available In-Memory option for its 12C Database underscores, highlights, punctuates, and screams from the top of the highest mountain our UBER BULLISH view on ENTERPRISE DEMAND."
Shares of Micron are up over three percent in Wednesday's session.
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