Micron Technology Inc (NASDAQ: MU) shares climbed in early trading on Thursday, after the company reported better-than-expected revenues for its fiscal first quarter.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.
Goldman Sachs On Micron Technology
Analyst Toshiya Hari maintained a Buy rating while raising the price target from $85 to $97.
This was the first time in seven quarters that Micron Technology announced its gross margin and earnings outlook ahead of Street expectations, Hari said in a note.
“Supported by an improving DRAM and NAND ASP outlook, Micron guided FY2Q (Feb) non-GAAP gross margin (excl. SBC) to 13.0% at the mid-point, ~840bps above FactSet consensus of 4.6%, and non-GAAP EPS (excl. SBC) to -$028 at the mid-point vs. prior expectations of -$028,” Hari wrote.
Evercore ISI On Micron Technology
Analyst Matthew Prisco reiterated an Outperform rating while lifting the price target from $90 to $100.
Micron reported a solid beat and raise quarter, “with guidance of subdued bit shipments in the out-quarters being more than offset by better pricing trends,” Prisco said.
“Inventory levels are at or near normal levels across the PC, Mobile, Auto, and Industrial end-markets, with Data Center expected to approach normal levels in 1HCY24 and mgmt. highlighting a strong underlying demand profile based on proliferation of AI functionality and associated content increases,” he added.
KeyBanc Capital Markets On Micron Technology
Analyst John Vinh reaffirmed an Overweight rating while raising the price target from $90 to $100.
Micron Technology’s outlook “reflects strong rebound in pricing,” with guidance implying “NAND pricing is +25-30% q/q and DRAM pricing is increasing ~15% q/q,” Vinh said.
“Additionally, pricing is expected to improve through FY24, as industry supply is expected to be below bit demand for NAND/DRAM,” he added.
Mizuho Securities On Micron Technology
Analyst Vijay Rakesh maintained a Buy rating while raising the price target from $86 to $95.
DRAM and NAND pricing tailwinds are likely to continue through 2024 and 2025, Rakesh said. The capex projection for fiscal 2024 is up only around 1%, which is well below “concerns of an aggressive ramp,” he added.
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