Micron Technology May Deliver ‘Modest Upside’ to Revised Guidance, Wedbush Says

Micron Technology (MU) may deliver a “modest upside” to its recently revised guidance when it releases fiscal Q1 results on Wednesday, Wedbush said in a note on Monday.

Wedbush raised the company’s price target to $95 from $80 with an outperform rating.

The chipmaker said on Nov. 28 it expects an adjusted Q1 loss of about $1.00 per share, compared with previous guidance for a loss of $1.00 to $1.14. The company also now expects Q1 revenue of about $4.7 billion, up from previous guidance of $4.2 billion and $4.6 billion.

“We would not be surprised if Micron delivers modest upside to the revised guide given management’s tendency towards conservatism,” said Wedbush analyst Matt Bryson.

Micron may also deliver upside to analysts’ estimates in Q2, Bryson said, adding “GMs could/should exceed current consensus, benefiting from higher pricing and some increase in utilization rates.”

NAND computer memory prices are expected to “lift significantly into CQ1” and while gains for DRAM memory “appear more modest” there may be rising benefits for the company from a shift in mix toward DDR5 technology which would improve utilization rates, Bryson said.

“We would note, however that Micron has historically tended to underguide during periods of cyclical improvement,” the analyst said.

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