Loop Capital said that while the memory industry has had a tough few quarters, there are signs that the stock price is nearing a bottom, and now is a good time to buy Micron shares. Analyst Charles Park began with a buy rating on the semiconductor stock, saying in a note to clients on Thursday that he expects Micron’s earnings to bottom in the second quarter of fiscal 2023 and inventory to bottom out. reach the peak. “We expect DRAM fundamentals to bottom in 1H23, and stock prices typically bottom out in the next few quarters,” he wrote. “While macro and demand uncertainty in the Northern Territory remains and semi-finished products may face further pressure, key indicators point to a near bottom for the memory sector and risk/reward appears favourable.” Park said the best time to add to equities is the sector When the outlook is at its bleakest and when memory makers slash capital spending. Other signs of a near bottom include a roughly 85% drop in the company’s earnings estimates. While shares are down about 41% this year due to pressure on the semiconductor industry and growth stocks, shares will still bounce back and offer attractive risk/reward at those levels, Park said. The company’s new price target implies a potential return of nearly 28% from Thursday’s closing price. “While bit shipments remain soft, price declines to date have been relatively resilient compared to past down cycles,” Parker wrote. “The long-term outlook for the memory industry remains positive as memory plays an increasingly strategic role in the semiconductor space.” – Michael Bloom, CNBC