Crispr Therapeutics shares tumble after significant earnings miss
On Friday, Raymond (NSE:RYMD) James expressed continued confidence in Micron Technology (NASDAQ:MU), maintaining an Outperform rating and a price target of $120.00. The semiconductor giant, currently trading at $103 with a market capitalization of $115 billion, maintains a "GOOD" overall financial health score according to InvestingPro analysis. The firm’s analysis highlighted Micron’s revenue performance, which surpassed consensus expectations for both the second fiscal quarter and the projected third fiscal quarter. However, gross margins fell slightly short of consensus, aligning with expectations, and are anticipated to decline quarter-over-quarter in the third fiscal quarter.
The report noted significant growth in Micron’s High Bandwidth (NASDAQ:BAND) Memory (HBM) revenue, which saw an increase of over 50% quarter-over-quarter. The company’s forecast for the HBM Total (EPA:TTEF) Addressable Market (TAM) was revised upward to more than $35 billion from the previous estimate of over $30 billion. This growth aligns with Micron’s impressive 80% year-over-year revenue growth, reaching $29.1 billion in the last twelve months. Micron’s year-end market share target for HBM remains on track, with potential for further gains in 2026 due to strong technology execution.
Micron’s management reported that the excess inventory issues with PC and smartphone customers have largely been resolved and that balance sheet inventory levels are expected to decrease throughout the year. The firm’s commentary suggested that gross margin improvement is likely in the fourth fiscal quarter, although the pace may be gradual. This is due to the benefits of a better product mix being partially offset by charges related to NAND underutilization and factory startup costs.
Raymond James analysts have raised their estimates for Micron, anticipating that margin improvements will accelerate in fiscal year 2026, driven by a stronger HBM mix and stabilizing NAND pricing. The firm considers the current price-to-book ratio of 2.4x to be an attractive risk/reward proposition, citing cyclical tailwinds, the secular growth of HBM, and anticipated market share gains as reasons for their positive outlook. InvestingPro analysis suggests the stock is currently fairly valued, with additional insights revealing strong growth potential and 8 more exclusive ProTips available to subscribers. For comprehensive analysis, access the detailed Pro Research Report, part of InvestingPro’s coverage of 1,400+ top US stocks.
In other recent news, Micron Technology reported its Q2 FY2025 earnings, which exceeded analyst expectations. The company achieved an earnings per share (EPS) of $1.56, surpassing the forecasted $1.44, while revenue reached $8.05 billion, beating the anticipated $7.91 billion. This strong performance was largely driven by a significant year-over-year increase in DRAM revenue, which saw a 47% rise. Following the earnings announcement, both Citi and Stifel maintained their Buy ratings on Micron, with Citi adjusting the stock’s price target to $120 and Stifel maintaining a $130 target. Citi analysts noted that despite lower gross margins, they anticipate an improvement in DRAM pricing by the second quarter of 2025, contributing to a market recovery. Stifel highlighted Micron’s resilience in NAND bit shipments and the positive outlook for DRAM shipments in the upcoming quarter. The company also projected record revenue for the next quarter, driven by continued demand in data centers and AI-related memory markets. These developments underscore Micron’s strategic positioning in the competitive semiconductor industry.
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