Micron reiterated buy at Citi, as DRAM pricing expected to be higher in second-half
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Micron (NASDAQ:MU) received some positive commentary from Wall Street as Citigroup reiterated its buy rating on the semiconductor company, noting that dynamic random access memory pricing could be higher in the second half of the year.
In a note to clients, analyst Christopher Danely reiterated the firm's buy rating and $120 price target on Micron, noting that DRAM pricing is likely to decline "in the mid-single digits" quarter-over-quarter in the first-quarter, but with the spot price 16% above the contract price, this bodes well for second-quarter pricing and beyond.
"Our channel checks indicate continued pricing improvements in DRAM and we expect DRAM ASP to be down low-to-mid single digit QoQ in 1Q22 and flat to up QoQ in 2Q22," Danely wrote in the note. "Also, we expect DRAM shortages in 2H22 given DRAM makers are constricting supply growth."
Micron shares were down nearly 4% to $84.10 in premarket trading as stocks tumbled on Russia's attack on Ukraine.
Danely added that PC demand remains "solid," though some data center customers have held off on ordering DRAM due to "healthy levels" of inventory. 
On Wednesday, Micron entered into a multi-year deal with Xperi (NASDAQ:XPER) to give Micron access to XPER's IP licensing business Adeiaâs hybrid bonding IP to enhance next generation memory devices.