The semiconductor company Micron (MU) is set to release its Q1 FY25 financial results on December 18. Wall Street analysts expect the company to report earnings of $1.76 per share for Q1 versus a loss of $0.95 in the year-ago quarter. Also, analysts expect revenues to increase 84% from the year-ago figure to $8.71 billion, according to TipRanks’ data.
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In terms of stock price, Micron shares have risen about 26% this year, fueled by the surge in AI adoption and the increasing demand for its memory solutions.
Analysts’ Opinions Ahead of Micron’s Q1 Earnings
Ahead of the company’s Q1 earnings release, several analysts remain bullish about MU and have reaffirmed their Buy ratings on the stock.
Among the bullish analysts, Stifel Nicolaus analyst Brian Chin reaffirmed his Buy rating on the stock with a price target of $135 per share. Chin is optimistic about Micron’s ability to sustain strong margins and profitability, even amid cyclical pressures in the consumer memory market. His confidence is supported by Micron’s progress in high-bandwidth memory (HBM) DRAM and its control over NAND supply, which are expected to offset potential declines in average selling prices (ASP).
Chin also foresees a market recovery in the second half of the fiscal year, driven by better execution on key growth initiatives. Further, Micron’s edge over competitors like Samsung reinforces a positive long-term growth outlook.
Similarly, analyst Aaron Rakers from Wells Fargo reiterated his Buy rating on Micron, maintaining a price target of $175.
The analyst believes that Micron’s expanding DRAM solutions portfolio positions the company for future growth. In addition to DRAM, he believes that Micron is gaining momentum in the enterprise SSD market, with notable revenue growth and market share expansion.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a large 11.75% move in either direction.
Is MU a Strong Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MU stock based on 23 Buys and one Hold assigned in the past three months, as indicated by the graphic below. At $153.05, the average MU price target implies 49.3% upside potential.
