Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Cantor Fitzgerald has reiterated its Overweight rating and $155.00 price target on Micron Technology (NASDAQ:MU) following the company’s raised outlook for its August quarter. The semiconductor giant, trading near its 52-week high with a 47% gain year-to-date, appears fairly valued according to InvestingPro calculations.
Micron recently increased its financial guidance ahead of a presentation at a competitor’s conference, prompting the reaffirmation from the research firm.
The firm highlighted an increasingly healthy DRAM supply and demand outlook as a key factor supporting its continued positive stance on the memory chipmaker.
Cantor Fitzgerald also noted continued improvements in the NAND market, along with Micron’s strong execution in moving up the product stack to deliver premium memory and storage solutions.
The research firm stated that concerns about High Bandwidth (NASDAQ:BAND) Memory (HBM) pricing and margins are "overdone," supporting its maintained Overweight rating and $155 price target for the semiconductor company.
In other recent news, Micron Technology has reported significant developments in its financial outlook. The company preannounced positive results for its August quarter, showing an increase in revenues, gross margins, and earnings per share due to improved pricing in the DRAM market across various sectors. Micron now anticipates fiscal fourth-quarter revenue of approximately $11.2 billion, a notable rise from previous estimates of $10.7 billion. The company also adjusted its gross margin forecast to about 44.5% and increased its earnings per share estimate to $2.85.
Analysts have responded to these updates with various ratings and price targets. JPMorgan raised its price target for Micron to $185, maintaining an Overweight rating, while UBS reiterated its Buy rating with a $155 price target. Mizuho (NYSE:MFG) also increased its price target to $155 from $150, citing improved pricing as a key factor. Despite the raised outlook, BofA Securities maintained a Neutral rating and a $140 price target, noting broad-based strength in DRAM and NAND memory chips. Barclays (LON:BARC) maintained its Overweight rating with a $140 price target, acknowledging the company’s improved pricing and execution. These recent developments reflect a generally optimistic view among analysts regarding Micron’s financial performance.
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