Micron Technology's Strong Buy Rating Maintained as Analyst Raises Price Target by 36.8%

Piper Sandler's Harsh Kumar raised their price target on Micron Technology (NASDAQ: MU) by 36.8% from $95 to $130 on 2024/03/21. The analyst maintained their Strong Buy rating on the stock.

Micron Technology, Inc., a leading memory and storage products manufacturer, reported impressive quarterly results for Q2 2024, along with strong guidance for Q3. The company's performance was driven by ongoing favorable market conditions and various factors contributing to improved pricing.

In Q2 2024, Micron Technology reported earnings per share (EPS) of $0.42, surpassing the Zacks Consensus Estimate of $(0.27) by a significant margin. This also represented a remarkable 122% increase compared to the EPS of $(1.91) in Q2 2023. The company's revenue for the quarter reached $5.82 billion, outperforming the Zacks Consensus Estimate of $5.33 billion and showing a substantial 58% growth compared to Q2 2023's revenue of $3.69 billion. The gross margin stood at $1.16 billion.

Looking ahead to Q3 2024, Micron Technology's management provided guidance of EPS in the range of $0.38 to $0.52 and revenue between $6.4 billion and $6.8 billion. Additionally, the company expects a gross margin of 25% to 28%. President and CEO Sanjay Mehrotra expressed confidence in the company's future prospects and highlighted its strong product portfolio, particularly its positioning in the multi-year opportunity enabled by artificial intelligence (AI).

Following the release of Micron Technology's Q2 2024 results, several analysts updated their ratings and price targets for the stock on March 21, 2024:

- Bank of America's Vivek Arya raised their price target by 20%, from $100 to $120, and maintained their Strong Buy rating on the stock. - KeyBanc's John Vinh raised their price target by 17.4%, from $115 to $135, and maintained their Strong Buy rating on the stock. - JP Morgan's Harlan Sur raised their price target by 23.8%, from $105 to $130, and maintained their Strong Buy rating on the stock.

These ratings reflect the positive sentiment surrounding Micron Technology, with 90.9% of top-rated analysts currently rating the stock as a Strong Buy or Buy. Only 4.5% of analysts see it as a Hold, while another 4.5% recommend or strongly recommend selling the stock.

The stock price of Micron Technology has seen a significant boost since the release of its latest quarterly report, rising by 14.1%. Moreover, on a year-over-year basis, the stock has surged by an impressive 87.4%. These figures clearly demonstrate Micron Technology's outperformance compared to the broader market, with the S&P 500 showing a 30.9% increase during the same period.

Harsh Kumar, the Piper Sandler analyst who raised their price target on Micron Technology, is ranked in the top 2% out of 4,518 Wall Street analysts by WallStreetZen. Kumar has an average return of 28.2% and an impressive 65.4% win rate. Their specialization lies in the Healthcare and Technology sectors, indicating their expertise in analyzing companies like Micron Technology.

Micron Technology, Inc., headquartered in Boise, Idaho, is a global leader in designing, manufacturing, and selling 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. Micron Technology offers a wide range of memory and storage technologies, including DRAM products, NAND products, and NOR memory products under its Micron and Crucial brands, as well as through private labels. These products cater to various markets, including cloud servers, enterprise, client, graphics, networking, and mobile devices. The company also provides SSDs and component-level solutions, as well as memory and storage products for automotive, industrial, and consumer markets. Micron Technology reaches its customers through direct sales, independent representatives, distributors, retailers, and web-based channels.

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