Micron Technology's Profitability Projections Upgraded Amid Optimism About Pricing Patterns

Susquehanna's Mehdi Hosseini raised their price target on Micron Technology (NASDAQ: MU) by 29.4% from $143 to $185 on 2024/06/17. The analyst maintained their Strong Buy rating on the stock.

Hosseini's decision to upgrade Micron Technology's profitability projections into Q3 2024 was driven by their analysis of the company's Technology Hardware portfolio, which includes Semi Manufacturing, Storage, Enterprise HW, Networking, and Display sectors. According to the analyst, this update reflects "growing optimism about the future of blended DRAM/NAND pricing patterns."

However, Hosseini also pointed out some uncertainties regarding bit shipment upside due to the lack of clean room space. Despite this concern, the analyst believes that the lack of clean room space can have a positive impact on average selling price (ASP) upside, which ultimately benefits the company.

It's worth noting that Hosseini's rating and price target update were not the only ones on June 17, 2024. Analyst Vivek Arya from Bank of America raised the price target by 18.1% from $144 to $170, while Cantor Fitzgerald's C J Muse raised it by 20% from $150 to $180. Both analysts maintained their Strong Buy ratings on the stock.

When it comes to the overall analyst sentiment, 95.5% of the top-rated analysts currently rate Micron Technology as a Strong Buy or Buy. Only 4.5% see it as a Hold. Interestingly, no analysts recommend or strongly recommend selling the stock, indicating a positive outlook among analysts.

In terms of performance, Micron Technology has shown impressive growth. Since the company's last quarterly report on February 29, 2024, the stock price has surged by 63.1%. On a year-over-year basis, the stock is up a staggering 121%. These figures demonstrate that Micron Technology has outpaced the broader market, with the S&P 500 only showing a 24.7% increase during the same period.

Mehdi Hosseini, the Susquehanna analyst who upgraded Micron Technology, is ranked in the top 14% by WallStreetZen among 4,604 Wall Street analysts. With an average return of 7.5% and a 50.5% win rate, Hosseini specializes in the Industrials and Technology sectors.

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. They offer a range of memory and storage technologies, including DRAM products, NAND products, and NOR memory products. These products cater to various markets such as cloud servers, enterprise clients, mobile devices, and automotive, industrial, and consumer sectors.

Micron Technology's direct sales force, independent representatives, distributors, retailers, and web-based customer direct sales channels are used to market and sell its products. The company is headquartered in Boise, Idaho and was established in 1978.

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