At the close of Eastern Time on Tuesday, Micron Technology rose 8.44% to US$37.38, with a turnover of US$1.284 billion.
Recently, Intel and Micron issued a joint announcement stating that they had signed a new supply agreement on March 9th, which will take effect on the 6th. The statement mentioned that the new agreement has modified the pricing and power terms. Many analysts believe that Micron has used this price increase to kill Intel. This seems to mean that "people have to bow their heads under the roof."
Whether Micron Technology is still worth holding now? Let’s take a look at the current views of mainstream institutions and media on Micron Technology.
(Source: Snowball)
1. What does the organization think?
Bank of America: downgraded Micron Technology to underperform with a price target of $50
Bank of America analyst Simon Woo downgraded Micron Technology from buy to underperform with a price target of $50. He is worried that third-quarter earnings will fall or that he will lower his forecast. John Woo told investors in a research note that storage stocks have performed better than expected in 2019 and 2020 year to date, but consensus expectations for the second quarter and the second half of 2020 are "overly optimistic." Analysts do not expect a strong rebound in profits from memory stocks in the second and third quarters, as market expectations are in line.
UBS : Raise Micron Technology to Buy with price target of $75
UBS analyst Timothy Arcuri upgraded Micron Technology (MU) to Buy from Neutral, with a price target of $75 from $47. The company's shares closed down $8 on Tuesday at $57.25. Arcuri told investors in a research note that Micron has "only slightly outperformed" the S&P 500 over the past two years and that the time has "finally arrived" for it to significantly outperform the S&P 500 over a sustained period. The analyst believes the company is in a much stronger position on the cusp of a cyclical uptick in a better-structured industry.
Raymond James: Raised Micron to Buy from Overweight, with price target of $70
Raymond James analyst Chris Caso raised Micron to Buy from Overweight, with price target of $70. Caso told investors in a research note that his company's analysis of future conditions concluded that supply and demand conditions are most likely to improve further over time. Memory capex has fallen sharply for three consecutive quarters, which will constrain capacity in 2H, he added, adding that customer inventories have now normalized, primarily due to improvements in hyperscale.
Morgan Stanley : Upgrades Micron to overweight with price target of $73
Morgan Stanley analyst Joseph Moore raised price target on Micron from $56 Micron to $73, upgraded to Overweight. Moore told investors that while he didn't expect memory fundamentals to bottom out so soon, his survey clearly shows consumers are "building a real belief" that memory will tighten over the course of 2020. He added that memory prices began to stabilize six months ago, but the "significant difference" he saw in the mentality of memory buyers finally convinced Moore that memory's pricing advantage could be sustained.
Longbow: Maintain Micron Buy rating , raise target price to $80
Longbow analyst Nikolay Todorov raised Micron’s target price from $70 to $80, and did not change the Buy rating on Micron. He said Micron still has a long way to go to benefit from profitability and multiple expansions in this cyclical recovery. In his base case assumptions, Todorov said his forecast for 2020 of conservative cost declines and a 16% hybrid DRAM ASP decline and a 5% NAND ASP rise, resulting in Micron earnings per share mid-range At $6.70, it is 10 times the historical median memory multiple, implying a 20% upside from current levels. Todorov said he expects room for up to 50% upside in the future if prices end up higher than he expects.
US Stock Research Institute: Both revenue and profit exceeded expectations, Micron Technology may have emerged from the weak period
In the Q1 financial report, revenue fell by 35% year-on-year, and net profit fell by 85% year-on-year. Although both fell significantly year-on-year, the two core data The performance still exceeded analysts' expectations. After the release of the financial report, Micron Technology's stock price rose sharply after the market closed.
In the semiconductor industry, the financial performance of chip manufacturer giants this year is not very satisfactory. However, as they are optimistic about the financial performance guidance for the next quarter, this has also led investors to increase their holdings of chip stocks. This is why Micron Technology's stock price has rebounded in recent months.
For Micron Technology, as the semiconductor industry picks up in 2020, although it brings opportunities, there are also greater challenges. Whether Micron can seize the opportunity in the chip industry in the future is critical, and this will also be an important indicator that drives its stock price to usher in a round of high growth.
Mizuho Securities: Maintain a buy rating on Micron Technology and raise the target price to $65
Mizuho analyst Vijay Rakesh raised the target price on Micron Technology to $65 from $61 and maintained a buy into the rating. The analyst believes that as the supply and demand of DRAM and NAND tend to balance, as well as possible supply shortages in the second half of the year, the company's sales and gross profit margin will improve in 2020, with good prospects. Micron should see improving DRAM pricing trends in 2020, Rakesh told investors in a research note.
Cleveland: Upgrades Micron Technology to Buy with price target of $67
Cleveland Research analyst Chandler Converse upgraded Micron to Buy from Neutral as he believes Micron's pricing and demand appear to be improving in the near term, which his research supports Micron has a cyclical turn ahead of 2020. He believes the fair value of Micron shares is $67.
Susquehanna: Reaffirmed positive rating on Micron with target price of $85
Susquehanna analyst Medhi Hosseini raised his forecast for Micron, but it was still below consensus expectations as he tends to be conservative in the early stages of the memory cycle. Analysts said his 2021 forecast is still well above consensus expectations, indicating that memory demand will rise significantly as memory supply and demand dynamics shift from a "buyer" market to a "seller" market. Hosseini reiterated his positive rating and $85 price target on Micron.
2. How does the media view it?
Jiedong Media: Is the flash memory market collapsing? Micron Technology's net revenue and profit plummeted in fiscal year 2019, and there are many difficulties in the future.
Micron Technology's financial report for fiscal year 2019 surprised the outside world. Previously, the relationship between it and Intel was very complicated. It can be said that it was constantly being cut and messed up. Last year, the two parties announced that they would no longer cooperate in the product development of 3D NAND Flash after 96 layers. The two parties officially broke up. You can go your own way. I cross my single-plank bridge. At that time, Micron Technology also spent US$1.5 billion to acquire shares of IF Flash and fully control it. Perhaps it was because of the breakup with Intel that it caused huge losses to Micron Technology's revenue.
What needs to be noted is that the earth will still turn around without anyone, and Micron Technology can still survive without Intel. At that time, Micron Technology began to engage in independent research and development with the idea that if cooperation could not work, it would catch up on its own. As everyone knows, the enthusiasm was eventually defeated by reality. Micron Technology's "frustrating" not only failed to produce any products, but also made the 2019 financial report worse and worse, and the results were very ugly. The performance of
is ugly, and Micron Technology is naturally worried about it. In order to restore the confidence of investors, it is conducting a stock repurchase plan of US$10 billion. In the first nine months of fiscal year 2019, it has repurchased 67 million shares of common stock. The total price reached US$2.66 billion. It seems that Micron Technology is also working hard for performance.
However, thankfully, the poor financial results did not have much impact on Micron Technology, and the company's stock price and market value still performed well.But it has to be said that stock buybacks are a "poison". If Micron Technology wants to save its performance and truly become better and stronger, it needs to further optimize its production lines, find new breakthroughs in cooperation mechanisms, and continuously upgrade and transform its products.
Eastern Entrepreneur: Micron Technology shares rise despite poor earnings report
Signs of recovery for the coming next quarter appear solid enough. Micron is shifting its NAND chip shipments away from the general commodity market and into higher-value contracts due to the company's unique portfolio of high-speed and low-power solutions. Today, the mix between high-value transactions and commodity sales in the NAND industry is roughly 50-50, with management targeting an 80% high-value mix in fiscal 2021.
When it comes to DRAM chips, new generations of 5G-capable smartphones tend to have larger memory allocations than previous generation flagships, which tilts supply and demand in a more favorable direction as phone makers can absorb a larger share of the phones. Micron’s production capabilities. Data center servers are also hungry for more RAM than before, as end users want to keep more data in high-speed volatile storage. It's all about speeding up processing of extremely large data sets.
Micron even sees demand trends in the auto industry as positive, despite actual vehicle sales weakness in recent quarters. Today, the average car carries more and more computing content, which increases the value of installing DRAM and NAND memory chips that support all sensors, navigation, engine control and infotainment systems.
Source of this article: US Stock Research Society (public account: meigushe) aims to help Chinese investors understand the world, focusing on reporting on US technology stocks and Chinese concept stocks. Friends who are interested in US stocks should follow us
