Micron Technology Inc. (NASDAQ: MU) surged more than 7 percent on Monday after Nomura analysts raised its price target on shares of the chip maker.
According to CNBC, Nomura raised its price target to $100 from $55 for Micron’s shares. It representing about 83 percent of Micron’s closing price on Friday. This is the most bullish price forecast so far.
The report indicated that higher memory price and increased shares buyback program are some of the catalysts for the Micron stock.
"We see DRAM [memory] pricing resuming an upward trend in Q2, a first-time dividend and share buyback announcement in May, continued margin expansion in NAND [flash memory] and increased M&A discussion as important catalysts," analyst Romit Shah wrote in a note to clients Monday, according to CNBC. "We believe Micron shares are in the early stages of another major breakout … We are raising our target substantially."
Micron shares rose as much as 8 percent to $59.02 in the early trading on Monday. Including today’s rally, the stock was up more than 43 percent this year, making it one of the best-performing stocks this year.
Shah predicted memory price will rise by 10 percent in the next six months.