Boston, MA 11/25/2014 (wallstreetpr) – Micron Technology, Inc. (NASDAQ:MU) is said to be facing dwindling competition in the memory market. A number of analysts have taken note of that opportunity to boost their price target and rating on the stock. In the latest move analysts at Goldman Sachs Group Inc (NYSE:GS) increased their target price on the semiconductor stock, according to an article published by the Street Insider.
Price target hiking
According to Goldman’s James Covello, Micron Technology, Inc. (NASDAQ:MU) remains a “Neutral” stock but its price is bound to go up. As such, they have $32 target price on the stock. They originally set $29 target price on the stock.
In their adjustment of the target price of Micron, the analysts cited that solid demand of the memory products that the company makes, especially the DRAM products. The hike in target price for Micron by Goldman comes just when the semiconductor company recently update on its shares repurchase plans.
Micron Technology, Inc. (NASDAQ:MU) announced that its board of directors had approved $1 billion to return to the shareholders. The funds will be returned to the shareholders in the form of shares buyback, according a report by The Wall Street Journal. That marked the first time that the company sought to return such a huge amount to the shareholders in nearly three years. The company last repurchased its shares in 2011 during which it returned $19.7 million to shareholders.
According to the management of Micron Technology, Inc. (NASDAQ:MU), such a huge buyback budget is aimed at returning excess capital to investors, which also validates the company’s committed to shareholder value.
The company has enjoyed favorable market conditions of late, which have helped to boost its performance. It has mostly posted quarterly results beyond the consensus expectations in the recent times. There were concerns that semiconductor stocks would enter a slowdown phase after a robust season. However, for Micron, it appears as if sunny days are still ahead.
Price and volume action was seen in Micron Technology, Inc. (NASDAQ:MU) in yesterday’s trading session, most of the action was tilted towards positive side. Micron Technology, Inc. (NASDAQ:MU) is currently trading above its 20-Day EMA of $32.93 and RSI of 66.56. The stock is making higher highs and the trend in short term is up. Moving ahead the stock will face resistance near $36 and $39 respectively.