Micron Technology (MU) is set to report quarterly results after the close on Dec. 17 and with shares having gained 176% year-to-date, Wedbush Securities is wondering how good can it get?
Shares rose 1.9% in premarket trading on Monday.
“We are lifting our estimates for the quarter to just a touch above the high-end of MU’s initial forecast, but we would not be surprised if our revised model proves overly conservative,” analyst Matt Bryson wrote in a note to clients. “MU’s FQ2 should benefit from sharper increases in memory pricing — We believe CQ4 DRAM pricing ultimately will lift at least 30%, while we see NAND pricing being up at least 20% (albeit with the exact magnitude of gains realized by each manufacturer in any given quarter in part determined by mix and the status of their specific contracts). As such, if MU NAND and DRAM px are indeed up only high single/low double digits (in-line with our model), we would expect more significant gains in FQ2 (to match our broader industry pricing expectations).”
Bryson reiterated his Outperform rating and raised his price target to $300 from $220 on Micron.
A consensus of analysts expect Micron to earn $3.91 per share on $12.86B in revenue.
