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Investing.com - Stifel raised its price target on Micron Technology (NASDAQ:MU) to $145 from $130 on Thursday, while maintaining a Buy rating following the chipmaker’s better-than-expected quarterly results and outlook. The new target represents potential upside from the current price of $127.25, with InvestingPro data showing the stock has already gained over 51% year-to-date.
The memory chip manufacturer reported fiscal third-quarter results that exceeded both Stifel’s and consensus estimates, with the firm noting that while some bit shipments were pulled forward into the quarter, management described this impact as modest. According to InvestingPro analysis, Micron maintains strong financial health with a current ratio of 3.13, indicating robust liquidity to support operations.
Stifel highlighted strengthening datacenter demand in Micron’s outlook, which is expected to drive a more favorable product mix and contribute to the company’s better-than-expected gross margin guidance for the fiscal fourth quarter.
The research firm noted that Micron will 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 pre-earnings expectations, while expressing confidence that broader pricing will trend higher into September and product mix will remain a tailwind through year-end.
In other recent news, Micron Technology reported its fiscal third-quarter earnings, exceeding analysts’ expectations with an earnings per share of $1.91 and revenue of $9.3 billion, surpassing the forecasted $8.84 billion. This strong performance was driven by robust demand in the DRAM and NAND segments, with DRAM revenue reaching a new record. The company also provided an optimistic outlook for the fourth quarter, anticipating revenue of $10.7 billion and a gross margin of 42%. In response to these results, several analysts have adjusted their price targets for Micron. Raymond (NSE:RYMD) James raised its price target to $150, citing better-than-expected gross margins and a strong outlook, while Piper Sandler increased its target to $165, highlighting the company’s impressive quarter and favorable product mix. KeyBanc also raised its target to $160, acknowledging Micron’s strong performance in the DRAM and High Bandwidth (NASDAQ:BAND) Memory (HBM) segments. Micron’s HBM products continue to show rapid growth, contributing significantly to the company’s market share and profitability, as noted by these firms.
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