Micron Technology's fair value estimate raised to $110 per share, anticipating significant growth.

From Morningstar: 2024-06-28 10:11:00

Micron Technology’s fair value estimate raised to $110 per share from $80 due to higher growth and margin forecast. Expecting significant growth through fiscal 2026 driven by higher expectations for DRAM business.

May-quarter revenue for Micron rose 82% year over year to US$6.8 billion. Both DRAM and NAND revenue increased in line with firm revenue growth. Sequential growth expected to continue for DRAM and NAND through fiscal 2025, with record revenue anticipated in fiscal 2025 and 2026. Gross margin also improving in line with revenue.

Fiscal third-quarter results for Micron aligned with forecast, rebounding meaningfully from a cyclical trough in fiscal 2023. Market response led to shares dropping as much as 7% after hours. Even with new valuation of $110 per share, shares seen as overvalued. Expecting softer results post fiscal 2026 forecast strength.



Read more at Morningstar: Micron Earnings: Fair Value Estimate Hiked