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Investing.com - CFRA raised its price target on Micron Technology (NASDAQ:MU) to $155 from $117 on Thursday, while maintaining a Buy rating on the memory chipmaker following better-than-expected quarterly results. The company, currently trading at $124.04, has demonstrated strong momentum with a 42% return over the past six months. According to InvestingPro data, Micron maintains a "GOOD" overall financial health score, supported by robust liquidity and moderate debt levels.
The research firm cited Micron’s growing high-bandwidth memory (HBM) exposure as a key driver for future growth, noting this segment is "a lot less commoditized than other memory businesses." CFRA also expects cyclical markets including PCs, autos, and industrials to improve in the coming quarters. This outlook aligns with InvestingPro data showing expected revenue growth of 41% for fiscal year 2025.
CFRA increased its fiscal year 2025 earnings per share estimate to $7.61 from $6.90 and raised its fiscal 2026 projection to $11.81 from $10.98. The firm also established a fiscal 2027 EPS target of $13.71 for Micron.
Gross margin expansion represents another catalyst for Micron’s stock, according to CFRA. The firm noted margins are expected to reach 42% in the August quarter with potential to exceed 50% over time, driven by higher volume and improved pricing and product mix.
CFRA also highlighted Micron’s U.S. expansion efforts, particularly in HBM production, as a potential competitive advantage over international rivals amid the likelihood of increased tariffs for the semiconductor industry. With a market capitalization of $138.7 billion, Micron remains a prominent player in the semiconductor industry, maintaining strong operational metrics including a current ratio of 3.13.
In other recent news, Micron Technology has launched its new 2600 NVMe SSD, featuring the industry’s first 9th-generation QLC NAND technology. This new storage solution is designed to rival TLC drives in performance while maintaining the cost-effectiveness of QLC technology. The drive, shipping globally to OEMs, offers speeds up to 3.6 GB/s and provides up to four times faster sequential write speeds compared to competing SSDs. Meanwhile, Stifel has raised its price target for Micron to $145, maintaining a Buy rating following the company’s better-than-expected fiscal third-quarter results and a positive fourth-quarter outlook. Baird also increased its price target to $200, citing accelerated high-bandwidth memory (HBM) market share gains and transformational growth in HBM and low-power DRAM segments. Similarly, Rosenblatt raised its price target to $200, highlighting strong demand for Micron’s DRAM products driven by artificial intelligence applications. Cantor Fitzgerald increased its price 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. These recent developments reflect Micron’s strategic positioning and growth in high-demand memory segments.
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