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 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.