Market Insider

Micron gains as analysts make bullish calls

Micron Technology Double-Data-Rate Synchronous Random-Access Memory (SDRAM) chip
Tomohiro Ohsumi | Bloomberg | Getty Images

Micron Technology shares gained 2.79 percent Friday, as two firms made positive calls on the stock, based on its potential in the memory chip market.

Brean Capital analyst Mike Burton initiated coverage on the chip maker's shares, saying Micron is well-positioned to take advantage of long term trends in the memory chip market.

Chris Cox, chief product officer of Facebook, speaks during the Facebook F8 Developers Conference in San Francisco, April 12, 2016.
RBC analyst: Here's our favorite tech stocks

In a note to investors today, Burton said " we move through the back half 2016 and demand begins to pick up and company-specific cost cuts come to fruition, earnings could rise off a depressed base."

Burton's price target on the stock is $14.

Meanwhile, analysts at Raymond James upgraded Micron shares to strong buy from outperform.

The analysts pointed to flash memory taking a significant amount of market share from hard disk drives, after disk drive maker Seagate Technology cut its third quarter revenue outlook.

Raymond James predicts that Micron will benefit from longer term growth opportunities, along with "improving leverage in non-volatile memory" and higher cash flow. The analysts maintain their $17 price target on the stock.

Micron shares have recently been under pressure due to weak demand for its chips amid a slowdown in personal computer shipments.

The stock has lost 25 percent this year, and more than 60 percent over the past 12 months.