Analyst Sees Micron Shares Doubling Yet Again

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Drexel Hamilton may not exactly be one of the first brokerage firms that investors think of when it comes to technology investing, but the firm has a call out that will stand out handily above the rest of analysts. Monday, Micron Technology Inc. (NASDAQ: MU) was reiterated as a Buy, but the price target was raised to $50 from $30 by the firm.

What investors need to know is that Micro is a $24.60 stock — and that is after close to a 3% gain early Monday. In short, Drexel Hamilton is calling for Micron to double — after its shares have already more than doubled from the lows of 2013.

The prior highest price target of all analysts, according to Thomson Reuters, was $40 before this call.

Keep in mind that Micron’s numbers were raised at Sterne Agee after earnings recently was well. That firm raised its rating last week to $32 from $30 and gave higher earnings expectations. Sterne Agee also talked up the DRAM spot price outlook, based on an uptrend, on Monday as well.

ALSO READ: AMD Remains Candidate to Possibly Double in 2014 

Also last week we saw that Merrill Lynch raised its 2014 and 2015 earnings per share by $0.16 per year to $0.19 and $0.20 after a good quarter with good guidance. While it only has a Neutral rating for Micron, it said:

We like AMD’s consistency in setting & hitting targets, execution in game consoles, share gain opportunity in graphics. We dislike limited visibility on timing of new semi-custom sales, unprofitable computing business, where Intel remains aggressive.

It is not usual to see analysts, from boutique or bulge bracket firms, call for a stock to double. It is even more unusual when you consider that the same stock has already doubled.

Micron shares were up 3.4% to $24.73 on Monday morning, versus a 52-week range of $9.07 to $25.68. The consensus analyst target is currently $28.43 per share.