.August 22, 2024 11:26:00 AM

Susquehanna analysts have lowered their price target for Micron Technology (NASDAQ:MU) to $175 from $185 while maintaining a Positive rating on the stock. This adjustment comes after Micron’s recent comments indicating flattish DRAM/NAND bit shipments for the November quarter, along with revised pricing assumptions.

Despite a “mid-cycle” correction within a broader up-cycle, analysts are optimistic about Micron’s long-term prospects. Structural changes in the memory industry, particularly in DRAM and NAND, are benefiting from successive generations of HBM products and limited bit supply growth, respectively.

Analysts believe the current cycle could last up to 12 quarters, longer than historical trends, thanks to new HBM products and restricted wafer capacity. Despite potential downside risks, Susquehanna expects Micron’s product mix and investment strategies to mitigate these risks. Updated EPS forecasts for 2025 are $9.49 and $11.70, compared to the consensus of $9.66 and $11.71.