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
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