Micron reiterated buy at BofA on 'improved profitability, stable free cash flow
Sundry Photography/iStock Editorial via Getty Images


Micron (NASDAQ:MU) is getting some appreciation from Bank of America, as the investment firm is reiterating its buy rating and $100 price target following the third day of the Consumer Electronics Show.
Following a meeting with Micron's (MU) Chief Financial Officer, David Zisner, and head of investor relations, analyst Vivek Arya said the company could see "broad based" growth in 2022, across the data center, smartphones, PCs and its automotive and industrial markets.

Any impact from the Xi'an COVID-19 lockdown should be "transitory,' with the company issuing a statement last month, as any shipments in January that are delayed will be caught up in February and no impact to the second-quarter.
"Longer-term, we believe the DRAM industry is less cyclical than in the past as industry consolidation has created discipline amongst competitors and growing DRAM complexity + slowing of bit growth/cost downs means vendors rely more on pricing for return on capital," Arya wrote in the investor note. "Meanwhile, [Micron's] consistent buybacks and newly announced dividend illustrate their commitment and focus to profitability and FCF generation."
Micron (MU) shares are slightly higher on Friday, trading at $95.85.
Arya added that Micron is still trading inline with its 5-year average, unlike other semiconductor competitors, which have all re-rated higher.
On Thursday, Mizuho said that Micron (MU) appears poised to benefit from strength in both the memory and data center markets.