Sprouts Farmers Market closes $600 million revolving credit facility
Investing.com - Raymond (NSE:RYMD) James raised its price target on Micron Technology (NASDAQ:MU), currently valued at $142 billion, to $150 from $120 while maintaining an Outperform rating on Thursday. According to InvestingPro, the company maintains a "GOOD" financial health score, with 13 additional key insights available to subscribers.
The firm cited Micron’s fiscal third-quarter results and fourth-quarter outlook, both of which exceeded consensus expectations. Gross margins, currently at 34.7%, performed better than anticipated and are expected to expand further in the fourth quarter and first quarter of fiscal 2025, driven by pricing and mix tailwinds. The company’s impressive 71% year-over-year revenue growth supports this positive outlook.
Raymond James noted that Micron’s High Bandwidth (NASDAQ:BAND) Memory (HBM) revenue grew approximately 50% quarter-over-quarter, with management indicating the possibility of achieving its year-end market share target one quarter earlier than planned. The company’s HBM4 roadmap appears solid, potentially enabling further market share gains in 2026.
The mobile segment performed particularly well, benefiting from customer inventory normalization, content increases, and possible order pull-ins. NAND price declines are moderating as demand and supply reach better balance.
Raymond James expects the current DRAM upcycle to extend well into 2026, supported by artificial intelligence applications, HBM strength, and iPhone 17 content increases, despite potential risks from consumer pull-ins and tariffs. The firm justified Micron’s valuation of 2.9 times price-to-book, which exceeds prior peaks, citing secular HBM growth that is on track to represent one-third of DRAM sales by calendar year 2026. With the stock’s RSI indicating overbought conditions and trading near its InvestingPro Fair Value, investors seeking deeper analysis can access the comprehensive Pro Research Report, available for over 1,400 US stocks.
In other recent news, Micron Technology reported its fiscal third-quarter earnings, surpassing expectations with an earnings per share (EPS) of $1.91, exceeding the forecast of $1.59. The company’s revenue reached $9.3 billion, outperforming the expected $8.84 billion, driven by strong demand for DRAM and NAND products. Piper Sandler and KeyBanc have both raised their price targets for Micron, citing strong fiscal performance and growth in High Bandwidth Memory (HBM) products as key factors. Piper Sandler increased its target to $165, while KeyBanc set it at $160, both maintaining an Overweight rating. Micron’s guidance for the fourth quarter also exceeded analyst projections, with anticipated revenue of $10.7 billion and a gross margin of 42%. The company continues to benefit from improved market conditions and a favorable product mix, particularly in the AI data center and automotive sectors. Recent strategic investments in U.S. manufacturing and R&D underscore Micron’s commitment to maintaining a competitive edge in the rapidly evolving technology landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.