Memory and storage solutions provider Micron (NASDAQ:MU) will report its fiscal third-quarter financial results on June 28 after the market closes. Prior to the company’s Q3 earnings release, several analysts are optimistic about MU and reiterated their Buy ratings on the stock based on the expectations of solid performance in the second half of 2023.
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Overall, Wall Street expects MU to post a loss of $1.60 per share in Q3 compared with earnings of $2.59 per share reported in the prior-year period. Meanwhile, revenue is expected to fall by 57.5% from the year-ago quarter to $3.67 billion.
Q3 Earnings: Here’s What Analysts are Saying
It is worth highlighting that in the past week, eight analysts maintained a Buy rating on MU stock, while one reiterated a Hold.
Among the bullish analysts, Citigroup analyst Christopher Danely expects the company to miss the Q3 consensus estimate and provide below-than-expected fiscal fourth quarter guidance, owing to a slowdown in the Dynamic RAM (DRAM) market and the recent China ban. Nevertheless, Danely is optimistic about Micron’s fundamentals and expects the company to benefit from a recovery in the DRAM business in the upcoming quarters
Moving on, Evercore ISI analyst C.J. Muse reaffirmed a Buy rating and also raised the price target on Micron to $80 from $75. Muse believes Micron will report results in line with or modestly lower than the midpoint of the company-provided outlook.
Furthermore, providing his predictions regarding Micron’s Q3 performance, Wedbush analyst Matt Bryson expects the company’s results to be in-line with expectations. The analyst believes that management will remain focused on controlling costs, which might balance any potential challenges arising from a pricing environment that may have been more aggressive than initially anticipated.
Interestingly, Bryson boosted his price target for MU stock to $80 from $65 while reaffirming the stock’s Buy rating.
From a note to investors on June 21, analyst Toshiya Hari of Goldman Sachs is of the opinion that Q3 revenues and adjusted EPS will remain near the low end of the company’s guidance. Also, he expects to see sequential growth of 2% in DRAM and 30% in NAND along with a sequential decline in the average selling price of 14% and 17%, respectively.
Despite these negative near-term views, Hari reiterated a Buy rating on MU as he expects “the stock to enter a positive EPS revision cycle in 2HCY23 (the second half of 2023) from what has been an over a 12-month stretch of negative EPS revisions.”
What is the Price Target for MU Stock?
Of the 22 top analysts covering Micron, 16 have a Buy rating, four suggest a Hold, and two assigned a Sell rating in the past three months. Overall, the stock scores a Moderate Buy consensus rating. Meanwhile, the average MU stock price target stands at $74.29, implying upside potential of 13.5%. Shares are up 30.2% year-to-date.
It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations. Moreover, each analyst has a remarkable success rate.
