Bernstein analyst Mark Li maintains $Micron Technology (MU.US)$ with a buy rating, and maintains the target price at $140.
According to TipRanks data, the analyst has a success rate of 61.1% and a total average return of 29.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Micron Technology (MU.US)$'s main analysts recently are as follows:
Micron reported a robust quarter and outlook, which was particularly notable considering the tempered recent expectations. Their EPS guidance aligned with the previous consensus before the negative revisions began. The company reached its sales goal for HBM in FY24 and is on track to achieve a multi-billion-dollar target the following year. Additionally, they are adhering to their anticipated DRAM market share in the mid-twenties for HBM, although there are suggestions that overall market forecasts may be too optimistic. While Micron's management is performing strongly, the stock is deemed to be on the pricier side. Analysts believe there may be more favorable risk-reward opportunities in other areas such as AI and memory.
Micron's ability to post 'beat/raise results' amidst growing macroeconomic challenges can be credited to strong data center demand and the expansion of its AI-levered high-bandwidth memory (HBM) sales. While a milder fiscal second quarter is anticipated due to seasonal effects, long-term earnings per share estimates for FY25 and FY26 have been increased reflecting a positive outlook on the company's performance.
Micron anticipates its High Bandwidth Memory (HBM) market share to align with its general DRAM market share by calendar year 2025. This expectation is central to the analyst's investment thesis, as they believe HBM has the potential to yield gross margins in the low-60% range and could exhibit a compound annual growth rate (CAGR) of 60%. The analyst maintains that the stock remains one of their preferred selections, citing an appealing valuation and the view that the opportunity presented by HBM is not yet fully reflected in the stock's price.
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