Argus sees 21 percent further upside in Micron Technology, Inc. (NASDAQ: MU) shares, which climbed 12 percent Thursday following strong quarterly results and guidance.

Argus: Buy Rated, $28 Price Target

Analyst Jim Kelleher has raised the price target by $6 to $28, implying a potential return of 21 percent over the December 22 closing price.

“Although MU shares rallied on the 1Q17 report and strong second-quarter guidance, they remain well below their peak levels of two years ago and appear attractive on sharply rising EPS expectations,” Kelleher wrote in a note.

As such, Kelleher still recommends Micron for risk-tolerant investors in memory technology, where historically volatile pricing can drive big stock swings. Micron shares were up 62 percent year-to-date in 2016.

Quarter In Review

Meanwhile, the Buy-rated Micron reported better-than-expected first quarter results and set the stage for a strong calendar year with above consensus second-quarter guidance, reflecting improving fundamentals in both DRAM and NAND.

For the first quarter, non-GAAP earnings rose 35 percent to $0.32 a share, above $0.26 Street estimate. Revenue increased 19 percent to $3.97 billion, also beat consensus view of $3.95 billion.

A Look Ahead

For the second quarter, Boise, Idaho-based Micron projects revenue of $4.35 billion–$4.70 billion and non-GAAP EPS of $0.58–$0.68, both were well ahead of Street expectations of $3.98 billion/$0.40.

For calendar 2017, Micron expects below-average growth in new memory capacity, stable pricing, and rising demand. Kelleher raised his fiscal 2017 non-GAAP EPS forecast to $2.39 from $0.85.

Shares of Micron closed Thursday’s regular trading at $23.19.