Stifel says Micron Q1 to ‘largely track’ consensus, may guide ‘conservatively’

Stifel expects fiscal Q1 results due from Micron (MU) on December 18 to “largely track” the firm’s and consensus estimates, reflecting strong quarter-over-quarter and year-over-year growth. While noting that the firm’s Q2 estimates reflect “modest” quarter-over-quarter growth and are below consensus, the firm suspects Micron could guide “even more conservatively” given seasonal and cyclical headwinds as consumer demand “continues to underwhelm.” However, the firm view this as “a mid-cycle correction, in which Micron can sustain strong margins/profitability,” adds the analyst, who keeps a Buy rating and $135 price target on Micron shares.