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 $94 from $85, on P/E of 13x our CY 25 EPS view, near MU’s long-term historical average. We narrow our FY 24 (Aug.) loss per share estimate to $0.51 from $1.12 and raise FY 25’s EPS to $6.14 from $5.91. MU posts Nov-Q loss per share of $0.95 vs. $0.04 loss, beating the $1.01 consensus loss view. Sales rose 18% from Aug-Q, better than expected, led by 24% growth in DRAM while NAND rose a more modest 2%. We are encouraged by improving gross margin trajectory (13% seen in Feb-Q vs. 6% consensus) and see a path towards 35%-40% by CY 24 end as well as return to profitability by the May-Q, driven by higher pricing, higher utilization, and better mix. Inventories are improving (DIOs at 159; down from 170 in Aug-Q) but remain above 120-day target partly for strategic reasons. We like ramp of high-quality memory in CY 24 (e.g., HBM3e) and memory content gain as AI-enabled devices see rising adoption (AI servers have 8x more DRAM; PCs/smartphones to command 4-8 GB of extra DRAM per unit).