Micron Technology, Inc. (NASDAQ: MU) shares jumped 8 percent Wednesday after the company topped market expectations for fiscal fourth-quarter revenue and EPS and issued forward guidance above Wall Street’s expectations.
A number of Wall Street analysts weighed in on Micron following the report. Here’s a rundown of what they had to say.
Voices From The Street
Stifel analyst Kevin Cassidy said investors remain skeptical of Micron given its forward PE ratio of only around 5.0, but the current semiconductor cycle may be different from past cycles. “Importantly, we view 3D NAND Flash and DRAMs as now addressing multiple end markets with a wider variety of feature sets, i.e. less commoditization,” Cassidy wrote.
Baird analyst Tristan Gerra said Micron’s gross margins are sustainable throughout 2018, making the stock’s depressed valuation compelling for investors. “Micron’s continued mix improvement in NAND (easy comp), above-average 3D yields, and corporate initiatives also support a scenario for stable or expanding gross margin over the next several quarters,” Gerra wrote.
Loop Capital analyst Betsy Van Hees said Micron is positioned for a “soft landing” as memory supply catches up to demand in the second half of 2018. “Although the F2018 CapEx guidance of $7.5B +/- 5% was above whisper numbers, we believe in the adage of ‘you have to spend money to make money,’” Van Hees wrote.
Morgan Stanley analyst Joseph Moore said the current memory cycle seems positioned to be stronger and longer than previously expected. “Certainly at some point the higher rate of NAND spending will create supply acceleration — but that doesn’t feel like 1h18,given the large amount of planar NAND being converted to DRAM next year,” Moore wrote.
Ratings And Price Targets
Wall Street is…
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!