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Investing.com - Stifel raised its price target on Micron Technology (NASDAQ:MU) to $145 from $130 on Thursday, maintaining a Buy rating following the company’s better-than-expected fiscal third-quarter results and fourth-quarter outlook. According to InvestingPro data, Micron’s stock has already delivered an impressive 51.4% return year-to-date, with the company currently valued at $142 billion.
The memory chipmaker reported fiscal third-quarter results that exceeded both Stifel’s and consensus estimates, with revenue growth reaching 71% compared to the previous year. While Stifel noted that the strength in third-quarter bit shipments reflected some pull-ins, the research firm indicated that management viewed this impact as modest. InvestingPro analysis shows 13 additional key insights about Micron’s performance and outlook.
Micron’s management highlighted strengthening datacenter demand in its outlook, which is expected to drive a more favorable product mix. This improved mix is reflected in the company’s better-than-expected fourth-quarter gross margin guidance.
The research firm observed that Micron will also benefit from DDR4 memory, though in a limited fashion given its current low-single-digit percentage revenue exposure to this product line.
Stifel attributed the stock’s aftermarket reaction not to disappointment but to high expectations ahead of the earnings report and upward estimate revisions that now better reflect a tightening DRAM market. The firm raised its estimates based on expectations for broader pricing to trend higher into September and for product mix to remain a tailwind through year-end.
In other recent news, Micron Technology has seen several analysts raise their price targets following strong earnings and revenue projections. Rosenblatt increased its price target to $200, citing robust demand for DRAM products driven by artificial intelligence applications. Baird also raised its target to $200, highlighting Micron’s accelerated market share gains in high-bandwidth memory (HBM) and its strategic positioning in high-growth memory segments. Mizuho (NYSE:MFG) set a new target of $150, acknowledging Micron’s impressive quarterly results and guidance, with significant growth in HBM shipments. Cantor Fitzgerald raised its target to $155, noting Micron’s August quarter guidance exceeded expectations, with projected revenues of $10.7 billion and earnings per share of $2.50. UBS also increased its target to $155, recognizing the growing importance of HBM in Micron’s business and its impact on revenue and gross margin performance. Analysts have emphasized Micron’s strategic moves in the AI and data center markets, with expectations of continued growth in HBM and DRAM segments. These developments reflect Micron’s strong financial performance and its potential to capitalize on expanding demand in memory solutions.
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