Ahead of Micron Technology Inc.’s (MU) fiscal first quarter results slated for next Tuesday after market close, one team of analysts on the Street recommends buying the stock on a recent sell-off. Despite fears over peak memory chip pricing and an overall tech decline, MKM Partners indicates that Boise, Idaho-based company should continue to benefit from strong DRAM and NAND trends in the new year. (See also: Why the Micron Sell-off Is Overdone: Morgan Stanley.)

In a research note Thursday, MKM Partners analyst Ruben Roy reiterated a buy rating on MU and lifted his price target to $54 from $52. Roy expects the stock to gain about 28% over the next 12 months from $42.20 per share, after rising 92.5% year-to-date (YTD) versus the S&P 500’s 19.3% increase over the same period.

DRAM Strength to Continue into 2018

The MKM analyst is upbeat on another strong year for the DRAM memory chip market, while suggesting that fears of price declines in NAND flash have been largely overblown. As investors sold off shares 15% since peaks in November, Roy told investors that “the sell-off presents a buying opportunity, with our expectations for favorable trends in the memory markets to continue into 2018.”

On the DRAM front, the analyst wrote that his firm’s latest supply chain checks indicate positive DRAM average selling price (ASP) trends to continue into the November quarter “driven by robust server demand and improving mobile demand.” The analyst upped ASP growth forecasts for MU’s DRAM business from 3% to 5% in the November quarter and to 3% from flat in the February quarter.

As for NAND, Roy believes that current NAND ASP expectations for 2018 “reflect a conservative initial take on the potential bit growth environment.” Citing cost improvements in 3D technologies, MKM expects MU 3D NAND to be “substantially more profitable relative to the company’s planar NAND.” (See also: Micron to Become Net Cash Positive by 2018: UBS.)

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