Mizuho Analyst Raises Micron Technology Price Target by 18.1% on Strong Buy Rating

Mizuho's Vijay Rakesh raised their price target on Micron Technology (NASDAQ: MU) by 18.1% from $105 to $124 on March 21, 2024. The analyst maintained their Strong Buy rating on the stock.

Rakesh's price target revision comes on the heels of Micron Technology's impressive second-quarter earnings report, which was released on March 20. In their analysis of the report, Rakesh highlighted the company's "better-than-expected results and solid guidance."

For the second quarter of 2024, Micron Technology reported earnings per share (EPS) of $0.42, surpassing the Zacks Consensus Estimate of $(0.27) and showing a substantial improvement from the $1.91 EPS reported in the same quarter of the previous year. The company also reported revenue of $5.82 billion, exceeding the Zacks Consensus Estimate of $5.33 billion and showing a significant increase of 58% compared to the second quarter of 2023's revenue of $3.69 billion. Additionally, Micron Technology achieved a gross margin of $1.16 billion.

Looking ahead to the third quarter of 2024, Micron Technology's management provided a positive outlook. They guided for an EPS of $0.38 to $0.52 and revenue ranging from $6.4 billion to $6.8 billion. The company also expects a gross margin of 25% to 28%. President and CEO Sanjay Mehrotra expressed confidence in Micron's performance, stating, "Micron delivered Q2 results with revenue, gross margin and EPS well above the high end of our guidance range." Mehrotra also emphasized the company's strong position in the semiconductor industry, particularly in relation to the multi-year opportunity enabled by AI.

In addition to Rakesh's rating adjustment, other analysts have also expressed their optimism about Micron Technology. 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, also maintaining a Strong Buy rating. JP Morgan's Harlan Sur raised their price target by 23.8% from $105 to $130 and kept their Strong Buy rating intact.

These positive ratings align with the overall sentiment among top-rated analysts, with 90.9% currently rating Micron Technology as a Strong Buy or Buy. Only 4.5% view it as a Hold, while another 4.5% recommend selling the stock.

Since Micron Technology's latest quarterly report on March 20, the stock price has increased by 14.1%. Furthermore, the stock has shown significant growth of 87.4% year-over-year, outpacing the S&P 500's 30.9% increase during the same period.

Mizuho analyst Vijay Rakesh, who raised the price target on Micron Technology, is recognized by WallStreetZen as one of the top 1% out of 4,518 Wall Street analysts. Rakesh specializes in the Consumer Cyclical and Technology sectors and has an impressive average return of 20.2% and a win rate of 55.7%.

Micron Technology, Inc. is a global leader in the design, manufacture, and sale of 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's product portfolio includes DRAM products, NAND products, and NOR memory products, which cater to various markets such as cloud servers, enterprise, client, graphics, networking, and mobile devices. The company also offers SSDs and other storage solutions for enterprise and consumer markets, as well as memory and storage products for automotive, industrial, and consumer applications.

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