Baird analyst Tristan Gerra maintains $Micron Technology (MU.US)$ with a buy rating, and adjusts the target price from $172 to $150.
According to TipRanks data, the analyst has a success rate of 51.3% and a total average return of 8.5% 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 delivered a robust quarter and outlook, which is particularly notable given the tempered recent expectations. The company provided EPS guidance that aligned with consensus estimates prior to recent negative adjustments. They reached their target of several hundred million in HBM sales for FY24 and are holding on to their projection of achieving several billion next year. Additionally, they expect to attain their desired DRAM market share—mid-20s—in HBM. However, the market forecast is perceived as overly optimistic. Management at Micron is performing well, yet the stock's valuation is considered high. It is suggested that there are more favorable risk-reward opportunities in other areas of AI and memory.
Micron has reported results that exceeded expectations and also raised future guidance, despite facing growing macroeconomic challenges. This performance is supported by robust demand in the data center sector, which is further bolstered by the company's growth in high-bandwidth memory sales that leverage artificial intelligence. Although a milder fiscal second quarter is anticipated due to seasonality, the projections for FY25 and FY26 earnings per share have been increased significantly.
Micron anticipates that its share of the High Bandwidth Memory (HBM) market will align with its general DRAM market share by the calendar year 2025, a central point of the investment thesis due to the belief that HBM can yield gross margins in the low-60% range and represent a 60% compound annual growth rate (CAGR). The view is that the stock remains undervalued and the potential of the HBM market has not been completely factored into its current pricing.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.