Investing.com – Micron Technology (NASDAQ:MU) rose nearly 2% during Wednesday’s trading as BMO upgraded the stock to outperform on the expectation that the current situation of demand exceeding supply could last longer and will benefit the memory chipmaker.
The company will announce its third quarter earnings today.
Analyst Ambrish Srivastava sees the stock at $110, an upside potential of around 29.5% from the stock’s current level of $84.50.
The analyst sees potential for “a continued constrained supply environment into 2022 driven by a combination of supply dynamics, capex discipline and demand drivers”.
The analyst said there is a fair amount of concern related to near-term pricing with respect to handsets in China and an uncertainty around the longevity of the current cycle but while some of them may be valid, a vastly different scenario could play out.