Micron Technology (MU)
Micron Technology received mixed analyst updates on September 23rd. UBS Securities maintained its Buy rating, while Wells Fargo lowered its 12 month price target to US$1,400 from US$1,525 and maintained their Overweight rating.
Micron’s investment case centres on demand for memory used in AI systems and data centres. In its latest reported quarter, the company said its HBM4 product was shipping in high volumes for a lead customer’s platform. It also forecast approximately US$50 billion in fiscal fourth-quarter revenue and an 86% gross margin. Those forecasts set a demanding benchmark for the next results.
Ahead of Micron’s September 30 fiscal fourth-quarter earnings report, analysts expect approximately US$50.82 billion in revenue and US$31.43 in adjusted earnings per share. Micron’s own guidance calls for roughly US$50 billion in revenue, US$31 in adjusted earnings per share and an 86% gross margin.
The current consensus analyst rating on the stock is a Strong Buy, with a technical signal of Strong Buy also. The average 12-month price target is US$1,515, implying a 41.34% upside from the current share price. Next week’s earnings report will test whether Micron can sustain the pricing and margins behind these expectations.
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