CFRA Maintains Buy Opinion On Shares Of Micron Technology, Inc.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target to $130 from $110, on a P/E of 13.5x our CY 25 EPS view, near historical. We up our FY 24 (Aug.) per share estimate to $0.83 EPS from a $0.20 loss and raise FY 25’s EPS to $8.25 from $7.28. MU posts Feb-Q EPS of $0.42 vs. -$1.91, beating the $0.24 consensus loss view. Sales rose 23% from Nov-Q, above expectations, led by +21% DRAM growth and +27% for NAND. Gross margin of 20% and 26.5% May-Q guide are well ahead of our view, as MU benefits from a strong pricing recovery and favorable mix. We think customer inventories have dramatically improved and see greater earnings leverage in this cycle, while capex outlook remains unchanged, supporting a tighter supply/demand landscape. Along with our view for higher revised consensus estimates, we see the potential for shares to be re-rated given content gain potential and increasing shift towards higher-value AI servers. MU already appears to have largely allocated all its HBM supply through 2025 (HBM3e consumes 3x the wafer supply as DDR5).

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