Micron Technology Receives Price Target Hike After Impressive Q2 2024 Earnings

UBS's Timothy Arcuri raised their price target on Micron Technology (NASDAQ: MU) by 4.2% from $120 to $125 on 2024/03/21. The analyst maintained their Strong Buy rating on the stock.

Arcuri's price target hike followed an assessment of Micron Technology's 2024/03/20-dated Q2 2024 earnings report and participation in the earnings call. According to the analyst, Micron Technology delivered impressive results, surpassing expectations in terms of revenue, margins, and earnings per share (EPS).

Thanks to marginally improved DRAM shipments, significantly better NAND pricing, and a $0.34 tax boost to EPS, the company's Q2 2024 earnings report exceeded the high end of guidance ranges. Arcuri noted that the management's commentary on supply and demand was more optimistic than three months ago, indicating increased bit demand across the industry for calendar 2024. As a result, Arcuri stated, "Micron remains one of UBS's top ideas."

For Q2 2024, Micron Technology reported EPS of $0.42, which surpassed both the Zacks Consensus Estimate of $(0.27) and the previous year's Q2 EPS of $(1.91) by 122%. The company also reported revenue of $5.82B, exceeding the Zacks Consensus Estimate of $5.33B by 9.2% and surpassing Q2 2023's revenue of $3.69B by a significant 58%.

Regarding the company's guidance for Q3 2024, Micron Technology's management expects EPS in the range of $0.38 to $0.52 and revenue between $6.4B to $6.8B. Additionally, they anticipate a gross margin of 25% to 28%.

Micron Technology's President and CEO, Sanjay Mehrotra, expressed confidence in the company's performance, stating, "Micron delivered Q2 results with revenue, gross margin, and EPS well above the high end of our guidance range." Mehrotra further commented on the company's product portfolio, positioning Micron Technology favorably for a strong second half of 2024. He also highlighted Micron's potential as a beneficiary of the multi-year opportunity enabled by artificial intelligence (AI) in the semiconductor industry.

Arcuri's price target increase was not the only positive assessment of Micron Technology on March 21, 2024. Other analysts also revised their price targets and ratings for the stock. Bank of America's Vivek Arya raised their price target by 20% from $100 to $120 and maintained their Strong Buy rating. KeyBanc's John Vinh raised their price target by 17.4% from $115 to $135, also maintaining a Strong Buy rating. JP Morgan's Harlan Sur raised their price target by 23.8% from $105 to $130, while also maintaining a Strong Buy rating.

Overall, 90.9% of top-rated analysts currently rate Micron Technology as a Strong Buy or Buy, while 4.5% consider it a Hold, and 4.5% recommend or strongly recommend selling the stock.

Since Micron Technology's latest quarterly report on March 20, 2024, the stock price has increased by 14.1%. Year-over-year, the stock has seen a substantial rise of 87.4%, outpacing the S&P 500, which has grown by 30.9% during the same period.

UBS analyst Timothy Arcuri is highly regarded among Wall Street analysts, ranking in the top 2% out of 4,518 analysts with an average return of 30.4% and a win rate of 70.3%. Arcuri specializes in the Technology sector.

Micron Technology, Inc. is a global company that designs, manufactures, and sells memory and storage products. The company operates through four segments: Compute and Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. Its product offerings include DRAM products, NAND products, and NOR memory products under the Micron and Crucial brands, as well as through private labels. Micron Technology serves various markets, including cloud servers, enterprise, client, graphics, networking, smartphone, automotive, industrial, and consumer markets.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.