Micron Technology (MU) is set to benefit from stronger-than-expected dynamic random-access memory, or DRAM, and NAND flash memory price increases, Wedbush Securities said in a note Friday.

Analysts said memory prices in calendar Q1 appeared to be rising much faster than Micron expected, as management guided to about 30% average selling price increases for Q2 while industry checks suggest contract prices for DRAM and NAND could rise 50% or more, with some cases approaching triple-digit increases.

The outlook for calendar Q2 also looks stronger than previously expected, with DRAM and NAND prices likely rising 30% to 50%, the analysts said, adding that their conversations with industry participants after the Chinese New Year showed continued growth in memory demand rather than a slowdown.

Analysts said they estimate pricing will rise about 40% in Micron's fiscal Q2 and 25% in fiscal Q3, with further gains likely in later quarters. "We are modeling for continued similar gains in fiscal Q4 and fiscal Q1 to provide some idea of where pricing and margins could/should go given industry trends."

The company is scheduled to report fiscal Q2 earnings on March 18.

Wedbush Securities reiterated its outperform rating and raised its price target to $500 from $320.

Shares of Micron Technology were up 3.8% in Friday trading.

Price: 420.68, Change: +15.33, Percent Change: +3.78