Analyst Toshiya Hari of Goldman Sachs reiterated a Buy rating on Micron (MU – Research Report), with a price target of $112.00.
Toshiya Hari’s rating is based on a combination of Micron Technology Inc.’s anticipated earnings beat for the fiscal second quarter, underpinned by favorable DRAM and NAND pricing trends. He foresees the company’s guidance for the third fiscal quarter surpassing market expectations due to projected sequential price increases and enhanced fixed cost absorption courtesy of rising utilization rates.
Hari also anticipates updates from Micron’s management concerning its short- and medium-term goals in High Bandwidth Memory (HBM), which he expects to contribute to gross margin improvements and drive positive revisions to the Street’s earnings per share (EPS) estimates. Furthermore, he views Micron’s stock’s recent lag in performance compared to its peers as a buying opportunity, given the expected significant increase in HBM revenue. Hari’s EPS estimates for the third and fourth fiscal quarters substantially exceed the consensus, reinforcing his bullish stance on the stock.
In another report released today, Stifel Nicolaus also upgraded the stock to a Buy with a $120.00 price target.
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Micron (MU) Company Description:
Founded in 1978 and based in Idaho, Micron Technology, Inc. is a leader in providing innovative memory and storage solutions worldwide. It produces computer memory and computer data storage including dynamic random-access memory, flash memory, and USB flash drives. The company operates through four segments: Compute and Networking Business Unit (CNBU); Mobile Business Unit (MBU); Storage Business Unit (SBU); and Embedded Business Unit (EBU).
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