This morning, Wedbush reiterated their Outperform rating on Micron Technology’s stock with a price target of $170.00.

Based on the detailed analysis of Micron Technology’s performance, future prospects, and market positioning, here are two bullet points that confidently explain why Micron Technology received an reiterated Outperform rating on their stock:

Strong Performance and Positive Outlook on High Bandwidth Memory (HBM) Production: Micron’s initiation of volume shipments of HBM3E parts in FQ3, generating over $100M in revenue with gross margins accretive to overall DRAM gross margins, showcases the company’s successful expansion into high-value product lines. Additionally, management’s expectation of HBM’s revenue contribution to grow into “several hundred millions of dollars” in FY’24 and “multiple billions of dollars” in FY’25, along with a market share in HBM in line with its overall DRAM market share by CY’25, underpins a strong growth trajectory. This pivot towards higher-margin products, coupled with the anticipated increase in demand for HBM due to its performance and packaging complexity benefits, positions Micron for substantial upside in revenues and margins.
Improved Financial Metrics and Market Positioning: Micron’s guidance for FQ4’24 suggests positive momentum with expectations of increased average selling prices (ASPs) for both DRAM and NAND, driving revenue and profitability higher into FY’25. This is further supported by the company’s strategic investments in R&D and CapEx, particularly in areas expected to support demand growth such as HBM assembly and fab construction. Micron’s strategic focus on improving profitability, coupled with a forecast of industry bit supply being below demand for both DRAM and NAND, leading to a contraction of industry inventory levels, indicates a favorable market environment for Micron. These factors collectively underscore a robust financial and strategic positioning that could lead to sustained long-term growth, justifying the Outperform rating and an optimistic outlook towards the stock’s future performance.

Needham Quinn Bolton 34% 1-year accuracy 44 / 130 met price target	62%upside $140	Buy Maintained	26 Aug 2024
Susquehanna Mehdi Hosseini 36% 1-year accuracy 14 / 39 met price target	103%upside $175	Positive Maintained	22 Aug 2024
Keybanc John Vinh 56% 1-year accuracy 38 / 68 met price target	68%upside $145	Overweight Maintained	6 Aug 2024
Keybanc John Vinh 56% 1-year accuracy 38 / 68 met price target	91%upside $165	Overweight Maintained	9 Jul 2024
UBS Timothy Arcuri 55% 1-year accuracy 16 / 29 met price target	77%upside $153	Buy Maintained	27 Jun 2024

Micron TechnologyMU

Fund manager confidence

75% more first-time investments, than exits

17% more repeat investments, than reductions

9% more capital invested

6% more funds holding

6% more call options, than puts

2.16% less ownership

14% less funds holding in top 10

Research analyst outlook

25 analyst ratings

Financial journalist opinion

Micron Technology
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