KeyBanc analyst John Vinh maintains $Micron Technology (MU.US)$ with a buy rating, and maintains the target price at $145.
According to TipRanks data, the analyst has a success rate of 61.4% and a total average return of 21.5% 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 stands out especially in light of the recently tempered expectations. The company's earnings per share guidance aligned with the consensus prior to the wave of negative revisions. The company successfully reached its sales target for HBM in FY24 and maintains its projection to generate several billion in sales next year. Additionally, Micron is on track to achieve their anticipated DRAM market share in HBM, although there are suggestions that the market forecast might be overly optimistic. While the company's management is performing strongly, there is a perception that the stock's valuation is on the higher side. It is suggested that there may be more attractive investment opportunities with better risk-reward profiles in the sectors of AI and memory.
Micron succeeded in delivering favorable outcomes in spite of intensifying macroeconomic challenges, bolstered by robust demand from data centers, which included the sustained expansion in sales of high-bandwidth memory (HBM), particularly those leveraged by AI. Despite anticipations of a milder fiscal second quarter owing to seasonal trends, projections for the fiscal years 2025 and 2026 earnings per share have seen a significant increase.
Micron is anticipated to achieve a balance between its High-Bandwidth Memory (HBM) market share and its overall DRAM market share by the calendar year 2025. This expectation is central to the investment thesis, given the belief that HBM could yield gross margins in the low-60% range and has the potential for a 60% compound annual growth rate. Despite recent adjustments, the stock is still considered a top pick, with the valuation deemed attractive and the market not yet fully recognizing the HBM opportunity.
Note:
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