6 Micron Analysts On Q3 Earnings: 'The Reset Was Generally Expected'

Micron Technology, Inc. MU reported third-quarter results after the closing bell on Thursday. Here's what the Street has to say.

Wells Fargo On Micron Technology

Analyst Aaron Rakers reiterated an Overweight rating and reduced the price target from $115 to $90.

Micron Technology reported revenue at the low-end of its guidance and provided a weak outlook for its fiscal fourth quarter “due to a significant reduction in near-term, consumer-driven, demand,” Rakers said in a note.

“Despite the negative near-term demand environment, MU's execution has remained positive — i.e., plans to reduce supply growth / F2023 capex, pricing discipline w/ willingness to hold higher inventory, and reit. DRAM and Flash roadmaps,” he added.

Mizuho Securities On Micron Technology

Analyst Vijay Rakesh maintained a Buy rating and lowered the price target from $95 to $84.

“MU reported good MayQ Rev/GM/EPS of $8.6B/47.4%/$2.59 BUT guided AugQ WELL BELOW Street to $7.2B/$1.63/42.5% (cons $9.1B/$2.57/47.9%), GMs down 490bps q/q with lower volumes and pricing,” the analyst wrote. “While we had cut estimates below consensus, we did not cut enough,” he added.

Raymond James On Micron Technology

Analyst Melissa Fairbanks reiterated a Strong Buy rating and cut the price target from $115 to $72.

“MU reported record F3Q results, but guided F4Q well below (-21%) consensus based on deteriorating demand trends across PC and smartphone markets, with an incremental downtick in datacenter demand due to continued component shortages,” Fairbanks wrote.

“While the F4Q outlook reflects these near-term headwinds, we believe the reset was generally expected given increasingly bearish macro concerns,” she added.

Rosenblatt Securities On Micron Technology

Analyst Hans Mosesmann maintained a Buy rating and reduced the price target from $165 to $100.
“Consumer demand and inventory-related headwinds are impacting industry and FQ4 outlook,” Mosesmann said in a note.

“We see a 2-3 quarter correction that the market demanded as a minimum, with Micron to adjust supply (CapEx) downward meaningfully in a market environment that is mixed and/or not broadly weak,” he added.

Needham On Micron Technology

Analyst Rajvindra Gil reiterated a Buy rating while lowering the price target from $80 to $64.

“Micron reported a solid print but the Aug. rev guide of $7.2BN missed the Street by 20%,” Gil said in a note. “The culprit was a marked decline in smartphones/PCs/CEs (50%+ of overall sales),” he added.

While projecting sequential declines until May 2023, the analyst said he expects Micron Technology to be “disciplined with its CapEx,” which could “help protect gross margins and FCF while not tipping the industry to overbalance,” he wrote.

BMO Capital Markets On Micron Technology

Analyst Ambrish Srivastava maintained an Outperform rating and $85 price target.

“Micron mentioned that there was significant reduction in near-term bit demand, largely due to weakness in demand in consumer markets, including PC and smartphones, due to several factors,” Srivastava said in a note.

The analyst reduced the earnings estimates for fiscal 2022 and 2023 from $9.35 to $8.52 and from $10.80 to $5, respectively.

MU Price Action: Shares of Micron Technology lost 2.95% Friday, closing at $53.65.

Photo via Shutterstock.

Posted In: Aaron RakersAmbrish SrivastavaBMO Capital MarketsHans MosesmannMelissa FairbanksMizuho SecuritiesNeedhamRajvindra GilRaymond JamesRosenblatt SecuritiesVijay RakeshWells FargoAnalyst ColorEarningsNewsPrice TargetReiterationAnalyst Ratings

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