Citi expects Micron Technology (NASDAQ:MU) to provide guidance well above expectations when the memory maker releases its fourth quarter fiscal 2025 financial results later this month.
Micron shares edged up 4% during early market trading on Thursday.
“We expect the company to report in-line results and guide well above consensus driven by higher DRAM and NAND sales and pricing,” said Citi analysts, led by Christopher Danely, in a Thursday investor note. “We believe the continued memory upturn is being driven by limited production and better than expected demand, particularly from the data center end market (55% of Micron revenue).”
Citi increased its full-year fiscal 2026 revenue estimate to $56B from $54.5B and its earnings per share estimate to $15.02 from $14.62. Its full-year EPS estimate is 26% more than the consensus. Citi expects first quarter revenue guidance of $13B and first quarter EPS guidance of $3.23.
“We believe the DRAM upturn is intact and our checks indicate demand from the AI sector increased sharply as C25 CSP capex rose by $18 billion during earnings season, and we believe this will lead to potential upside at Micron,” Danely added.
Citi reiterated its Buy rating and hiked its price target to $175 from $140.
Micron plans to release its fourth quarter results post-market on Tuesday, Sept. 23. A consensus estimate calls for adjusted EPS of $2.85 on revenue of $11.09B.