May 18, 2024

Tyna Woods

Technology does the job

Why Analysts Are Cautiously Optimistic About Micron Immediately after Earnings

Despite the fact that investors ended up upset with the Micron Technologies Inc. (NASDAQ: MU) quarterly success reported late on Tuesday, analysts looked further more out and have been fairly good on this semiconductor huge even with shrinking their targets.

24/7 Wall St. has provided some transient highlights from the earnings report, as nicely as what analysts claimed about Micron soon after the actuality.


© Offered by 24/7 Wall St.

For the fiscal fourth quarter, the business posted $1.08 in EPS and $6.06 billion in income, which in contrast with consensus estimates that referred to as for $.99 in EPS and $5.89 billion in revenues.


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Even though the quarterly review is often a concentrate, it is normally the guidance that sets the tone for what is coming in advance. Micron made available advice for its 1st fiscal quarter of 2021 as $5.2 billion in revenues, as well as or minus $200 million. Refinitiv’s consensus estimate is $5.31 billion. The firm also projected a gross margin of 27.5%, plus or minus 1%, or $800 million to $850 million.

BofA Securities reiterated a Acquire score with a $67 price tag aim. The brokerage business noted that this quarter was only a temporary setback and that the steering provided for the coming quarter was conservative and there need to be good upside.

Credit rating Suisse reiterated an Outperform score and a $90 price tag target. The company noted that disappointing gross margin and guidance replicate Micron’s “specific costdown and combine.” The firm also observed that the memory cycle is bottoming and that Micron’s structural place in the market place is enhancing.

CFRA reiterated a Hold score and reduced its rate goal to $53 from $55. The business noted:

Product sales rose 11% from Apr-Q, greater-than-expected with DRAM growing 22% (bit shipments up mid-20% variety providing rates down small one-digit share) even though NAND fell 8% (shipments flat advertising charges down large one-digit percentage). While we feel Micron will reward from ongoing cloud shelling out and increased content in mobile products, we see headwinds connected to reduced enterprise IT shelling out. In addition, we hope Micron to be amid the most negatively impacted by the modern Huawei ban (about 10% revenue impact), which has led us to sharply minimize our margin and EPS forecast. That claimed, we like Micron’s financial position, with net dollars of $2.6B and total liquidity of $11.8B.

Here’s what a handful of other analysts have been indicating:

RBC reiterated an Outperform rating and decreased its selling price goal to $57 from $60. Needham reiterated its Obtain ranking and reduced its selling price target to $65 from $70. Deutsche Lender reiterated it as Keep and raised its rate concentrate on to $51 from $48. UBS reiterated a Invest in rating and decreased its concentrate on selling price from $63 to $61. Mizuho reiterated a Invest in rating and lowered its selling price concentrate on to $56 from $58. Piper Sandler reiterated a Neutral score and lowered its concentrate on to $45 from $51. Cowen reiterated an Outperform ranking and lowered its price concentrate on to $57 from $60.

Micron Know-how stock traded down about 6% to $47.51 on Wednesday, in a 52-7 days variety of $31.13 to $61.19. The consensus value concentrate on is $63.47.

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