Wall Street Bullish On Micron Ahead Of Earnings

• Micron Technology, Inc. MU is down 58.9 percent in 2015.
• The company reports quarterly earnings on December 22.
• Wall Street seems mostly bullish on the stock ahead of earnings.

Micron Technology shareholders can’t wait for 2015 to be over. The stock has dropped 58.9 percent this year, but investors are hoping that the company will finish the year with a bang when it reports earnings on December 22.

Here’s a look at what three Wall Street firms have to say about Micron ahead of earnings.

Barclays

Analyst Blayne Curtis sees continued weakness in DRAM pricing in 2016, but is optimistic that Micron can continue its transition into a more stable, profitable and valuable business.

“Net net, while the story is pushed a bit to the right, this is well understood given the recent sell off and we still see value here given the overall maturation of the memory industry (still making money at the bottom), MU’s improving relative positioning (ramp of 20nm DRAM and 3D NAND), and attractive value (just 7x our new CY17 EPS),” he explained.

Barclays maintains an Overweight rating on Micron and a $20 price target for the stock.

Related Link: Why Goldman Sachs Is Buying Emerging Software Giants

Morgan Stanley

Analyst Joseph Moore also recently turned bullish on Micron. In a new report, Moore upgraded Micron to Overweight, explaining, “We remain cautious on near-term fundamentals, but think sentiment and valuation are near the bottom, and see 30 percent upside as fundamentals stabilize in 2h16.”

Morgan Stanley has an $18 price target for the stock.

Deutsche Bank

Finally, analyst Sidney Ho is also a buyer of Micron ahead of earnings and sees plenty of 2016 catalysts ahead. “We are optimistic that MU’s EPS will re-accelerate starting in mid-2016 as a number of catalysts (20nm DRAM, 16nm TLC and 3D NAND) are on track to deliver cost tailwinds,” he explained.

Deutsche Bank maintains a Buy rating on Micron and a $20 price target for the stock.

Disclosure: The author holds no position in the stocks mentioned.