Analysts hailed Micron Technology Inc.’s Q1 results and Q2 outlook by lifting their price targets on the stock.
Micron reported Q1 revenue of $7.69 billion, up 33.2 percent year-on-year, above the consensus of $7.67 billion. Adjusted EPS of $2.16 beat the consensus of $2.11.
Micron sees Q2 revenue of $7.3 billion–$7.7 billion above the consensus of $7.28 billion. It considers an adjusted EPS of $1.85–$2.05 above the consensus of $1.86.
Summit Insights analyst Kinngai Chan upgraded to Buy from Hold. Chan contends that the downside risk of Micron’s customers buying ahead of demand is now priced into the stock.
However, there is the additional risk of contract price decline in Q1 due to weaker seasonal demand. Chan sees the DRAM prices stabilize through the second half of 2022 as demand for DDRS ramps up.
Baird analyst Tristan Gerra raised the PT to $90 from $70 (9.7 percent upside) and kept a Neutral.
Earnings commentary and outlook confirmed that memory is currently in a mid-cycle correction and not on a cusp of a cycle downturn.
The end-demand remains healthy, with PC inventory adjustments mostly behind, while Micron’s inventory days remain at significantly lower levels than FY19/FY20 representing a forward measure of healthy supply/demand.
Goldman Sachs analyst Toshiya Hari raised the PT to $101 from $88 (23.1 percent upside) and kept a Buy.
Server demand appears robust, while “kitting” issues in the PC market that drove Micron’s disappointing Q1 seem to be easing due to better component availability elsewhere.
Raymond James analyst Chris Caso raised the PT from $100 to $115 (40.2 percent upside) and kept a Strong Buy.
Credit Suisse analyst John Pitzer maintained an Outperform and increased the PT from $110 to $130 (58.5 percent upside).
Mizuho analyst Vijay Rakesh reiterated a Buy and raised the PT from $95 to $98 (19.5 percent upside).
B of A Securities analyst Vivek Arya upgraded from Neutral to Buy and increased the PT from $76 to $100 (21.9 percent upside).
Piper Sandler raised the PT from $70 to $90, Deutsche Bank increased from $90 to $100, BMO Capital lifted from $105 to $115, and Wedbush from $85 to $100.
