Goldman Sachs is optimistic on Micron Technology stock ahead of quarterly results. The firm reiterated a buy rating on the chipmaker’s stock in a Tuesday note, accompanied by a $85 per share price target. Goldman’s forecast implies roughly 21% upside from Monday’s $70.50 close. Micron stock has added nearly 41% from the start of the year. MU YTD mountain Micron Technology stock. Goldman analyst Toshiya Hari said that while the firm has reduced its estimates for 2024 revenue and earnings, Micron stock should still outperform in the near-term. “[W]e expect the combination of improving demand trends and disciplined supply to drive higher pricing, improving margins/EPS and, in turn, sustained stock price outperformance over the coming quarters,” Hari said. And while a downturn in memory stocks sheds some doubt on the future of stock outperformance in the sector, “overall DRAM [direct random access memory] industry fundamentals will return to a positive trajectory on a through-cycle basis,” Hari said. Micron will report quarterly results on Sept. 27 after the closing bell. Analysts polled by FactSet forecast a loss of $1.15 per share on $3.9 billion in revenue. The Goldman report follows an upgrade to buy from Deutsche Bank a day earlier . — CNBC’s Michael Bloom contributed to this report.
