On Thursday, Wells Fargo (NYSE:WFC) maintained an Overweight rating on Micron Technology (NASDAQ:MU), while significantly increasing the price target to $190 from the previous $135. The adjustment reflects the firm's confidence in the company's earning potential, particularly ahead of its third-quarter fiscal year 2024 earnings report scheduled for June 26, 2024.
The firm's analyst cites a combination of structural and secular factors as the basis for the potential expansion of the company's earnings multiples. Additionally, there is a noted shift in investor sentiment, suggesting an anticipation of earnings per share (EPS) exceeding $15 in the future.
The raised price target to $190 is now set at approximately 15 times the estimated calendar year 2026 EPS of $12.76 per share. This new target represents a significant increase in valuation, indicating a bullish outlook for Micron Technology's financial performance over the next few years.
Wells Fargo's stance comes at a time when Micron Technology is preparing to release its upcoming financial results, with expectations set high by the firm's forecasts. The company's stock may see an impact from these revised estimates as investors and the market adjust to the new information.
In other recent news, Micron Technology has seen a flurry of activity from analysts. Fox Advisors raised their price target on Micron shares to $185, anticipating positive results in the company's upcoming fiscal third-quarter report. Stifel also increased their price target for Micron to $165, citing optimism about memory pricing conditions despite recent supply disruptions. UBS followed suit, raising its target to $155 based on upward industry trends for DRAM and NAND memory. Mizuho maintained a Buy rating on Micron, raising the target price to $155 and highlighting potential market share growth in the second half of 2024.
In legal developments, Micron was ordered to pay $445 million to Netlist (OTC:NLST) in a patent dispute, a decision that could potentially triple due to the finding of willful infringement. On the operational front, the New York Independent Grid Operator raised concerns over potential energy supply shortfalls, which could affect energy-intensive projects like the Micron NY Semiconductor plant.
InvestingPro Insights
As Micron Technology (NASDAQ:MU) approaches its third-quarter fiscal year 2024 earnings report, real-time metrics from InvestingPro provide a clearer picture of the company's financial landscape. With a market capitalization of $169.93 billion, Micron is a heavyweight in the semiconductor industry. Despite a challenging period with a -20.6% revenue growth over the last twelve months as of Q2 2024, the company has shown a remarkable quarterly revenue growth of 57.7% in Q2 2024, indicating potential recovery and growth.
InvestingPro Tips highlight several key factors that may influence investor sentiment. Analysts have revised their earnings upwards for the upcoming period, suggesting confidence in Micron's performance. Additionally, the company has a history of raising its dividend for three consecutive years, providing a yield of 0.3%, with the last dividend ex-date on March 28, 2024. This commitment to returning value to shareholders, combined with the anticipation of sales growth in the current year, may contribute to the positive outlook reflected in Wells Fargo's upgraded price target.
For those considering an investment in Micron Technology, InvestingPro offers additional insights to guide your decision-making. With a total of 19 additional InvestingPro Tips available, investors can delve deeper into the company's financial health and prospects. To access these valuable tips and make the most informed investment decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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