Barclays maintains Micron stock rating as memory pricing improves

Investing.com - Micron Technology (NASDAQ:MU), currently trading at $123.72 with a market cap of $137.4B, received a reiterated Overweight rating and $140.00 price target from Barclays (LON:BARC) on Monday. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $95 to $200.

The memory chipmaker raised its fourth-quarter fiscal 2025 guidance, citing improved pricing particularly in DRAM products and better execution. Micron now expects revenue of $11.2 billion, up from its previous forecast of $10.7 billion.

The company increased its gross margin guidance to 44.5% from 42.0% previously, while slightly raising its operating expense outlook to $1.22 billion from $1.2 billion. Earnings per share guidance was lifted to $2.85 from $2.50.

Micron reported that shipment volumes remain consistent with prior guidance, with pricing strength across all end markets. The company noted that upside came primarily from datacenter, PC, and mobile segments, though Barclays acknowledged potential pull-forward demand in PC and mobile markets.

The chipmaker confirmed its HBM3e 12-hi memory products are ramping yields faster than previous 8-hi versions and have surpassed them in production volume, with management expressing confidence in selling all available HBM supply through calendar year 2026.

In other recent news, Micron Technology has revised its financial outlook for the August quarter, increasing its revenue forecast to $11.2 billion from the previously projected $10.7 billion. This adjustment surpasses the consensus estimate of $10.8 billion. Additionally, Micron raised its earnings per share guidance to $2.85, exceeding analyst expectations of $2.52. Several analyst firms have responded to these developments. Mizuho (NYSE:MFG) increased its price target for Micron to $155 from $150, maintaining an Outperform rating. Rosenblatt Securities reiterated its Buy rating with a $200 price target, citing stronger-than-expected results driven by rising DRAM and NAND Flash prices. Wolfe Research also maintained its Outperform rating and set a $160 price target, attributing revenue and margin improvements to better pricing in DRAM products. Lastly, Stifel reiterated its Buy rating with a $145 price target, noting improvements in revenue, gross margins, and non-GAAP earnings per share, influenced by strength in DDR4 PC memory and LPDDR4 mobile DRAM pricing.

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