Wedbush analysts reiterated an Outperform ranking and raised their goal value on Micron (NASDAQ:) shares from $130 to $170 forward of the reminiscence chipmaker’s upcoming earnings report subsequent week.
“In our view, the first query with MU is historical past suggests the inventory is dear vs. asset ranges,” the agency’s analysts mentioned in a be aware.
Wedbush acknowledges that whereas reminiscence stays a cyclical trade, they imagine it’ll keep in undersupply by means of this yr and certain a lot of 2025. That is attributed to an absence of latest funding in NAND and DDR5, partly because of elevated capability necessities for Excessive Bandwidth Reminiscence (HBM).
“As such, we imagine Common Promoting Costs (ASPs), revenues, margins, and EPS are all destined to cycle larger, with e-book additionally set to elevate as FCF flows on to MU’s stability sheet,” analysts wrote.
“Internet, we count on solely constructive information for MU’s financials for a while to come back, and count on the inventory will proceed to elevate till we see a change in trade funding plans,” they added.
Micron shares climbed 2.7% in premarket buying and selling Tuesday.