Shares of Micron Technology Inc (NASDAQ: MU) declined in early trading on Thursday, despite the company reporting better-than-expected results. Here's a look at some key analyst takeaways.
Needham On Micron Technology
Analyst Rajvindra Gill maintained a Buy rating, raising the price target from $71 to $80.
Micron Technology reported strong fiscal third-quarter results and issued "solid" guidance, Gill said in the note. Although a decision by the Cyberspace Administration of China (CAC) "could potentially hurt sales by ~12%, we believe that overall memory conditions are improving," he added.
Excess inventory declined significantly during the quarter and there are "signs of both DRAM and NAND pricing bottoming as supply conditions marginally improve," the analyst further wrote.
Raymond James On Micron Technology
Analyst Srini Pajjuri reiterated an Outperform rating and raised the price target from $70 to $76.
"As expected, China related headwinds are impacting near term outlook and could persist for the next couple of quarters," Pajjuri wrote in a note. "Management also lowered its bit demand outlook for the year modestly due to continued PC and Smartphone weakness," he added.
"While China headwinds appear to be impacting margin expansion trajectory in the near term, we believe revenue growth has troughed in May-23Q and expect pricing to stabilize in the next 1 - 2 quarters," the analyst said.
Rosenblatt Securities On Micron Technology
Analyst Hans Mosesmann reaffirmed a Buy rating and price target of $100.
Micron Technology's guidance was more positive "than initially feared, considering the impact of 'CAC' restriction in China," Mosesmann said in a note.
"Inventory levels are stabilizing overall, and there is a stable to improving demand outlook due to significant and ongoing supply cuts and reductions in wafer starts," the analyst wrote. In the near- to mid-term, CAC represents a headwind "that could affect overall sales, with a projected impact in the low double digits," he added.
Bernstein On Micron Technology
Analyst Mark Li maintained an Outperform rating and price of $85.
"Near-term recovery is playing out as expected, though the expected recovery in FY24 may be more gradual," Li wrote in a note.
In the next fiscal year, Micron Technology's gross margins will "benefit from the reversals of write-downs & continue to rise," the analyst stated. "Without the write-down effect, underlying GM will still trough in the next few quarters, when ASP also troughs," he added.
MU Price Action: Shares of Micron Technology had declined by 4.14% to $64.29 at the time of publishing Wednesday.