Micron Technology stock could rise amid pricing recovery for certain types of computer memory, an analyst argued, though he anticipates the chip company to post a guidance miss later this week.

Citi analyst Christopher Danely reiterated a Buy rating and $150 price target on Micron shares in a research note. The stock was down 0.4% to $100.35 in premarket trading, with Danely's price target suggesting 49% upside.

Micron is scheduled to report its fiscal second-quarter results after the bell on Thursday. While Danely expects Micron to "post decent results," he believes the memory-chip maker's outlook will fail to meet Wall Street expectations.

In his view, the discrepancy will be driven by worse consumer mix and underutilization charges related to NAND flash memory, which accounted for 26% of total sales in the fiscal first quarter.

However, there are some bright spots. Danely noted that mainstream spot pricing for DDR5 memory is "inflecting up," as pricing has grown nearly 8% this year, the largest increase since the first quarter of 2024. "This supports our belief that DRAM pricing should improve beginning in 2Q25," he wrote.

The analyst remains upbeat on Micron shares, pointing to opportunities in high bandwidth memory for artificial intelligence and a recovery in DRAM memory given supply and demand dynamics for 2025.

In short, "upturn is still intact and upside is coming," Danely wrote. Investors just have to be patient.

He isn't the only bull on Wall Street. Of 38 analysts polled by FactSet, 32 rate Micron stock at Buy or the equivalent, five rate it at Hold, and one at Sell.