CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We boost our 12-month target to $110 from $94, on a P/E of 12.6x our CY 25 EPS view, near MU’s long-term historical average. We narrow our FY 24 (Aug.) loss per share estimate to $0.20 from $0.51 and raise FY 25’s EPS to $7.28 from $6.14. Ahead of Feb-Q results set to be released on 3/20, we see loss per share of $0.25 on $5.3B in revenue (implies +45% growth), as we think the recovery in memory is gaining momentum. We think MU remains well-positioned, given its strong DRAM exposure (over 70% of revenue), which is seeing a more favorable pricing landscape. We also like MU’s greater emphasis on DRAM servers that are higher priced (higher margin) as well as upside that can be seen from High Bandwidth Memory (HBM), as MU is tethered to Nvidia’s H200 (ramping in CQ2; B200 later this year powers even more HBM memory). Given content gain potential and increasing shift towards higher-value AI servers, we think MU’s multiple could expand versus historical levels (not in our analysis), which could offer upside ahead.