Out of the 34 analysts covering Micron (MU), 20 analysts rated the stock a “buy,” while 12 analysts rated the stock a “hold.” Two analysts have given the stock a “sell” rating. Analysts have set a target price of $46.89 for the stock and a median consensus estimate of $48.50. Micron is now trading at a ~9.3% discount to its consensus median target estimate.
Micron stock closed up 9.6% on March 21 to $43.99 on better-than-expected results for Q2 2019, which ended on February 28. Micron’s peers NVIDIA (NVDA), Marvell (MRVL), Intel (INTC), Advanced Micro Devices (AMD), and Western Digital (WDC) also rose around 5.47%, 3.9%, 1.5%, 8.5%, 9.8%, respectively, on March 21, on Micron’s forecast of a recovery in memory chip demand.
Micron’s Q2 results
The computer memory chip maker reported adjusted earnings of $1.71 per share in the second quarter, while revenues were $5.84 billion. Earnings beat the expectations of $1.67 per share by 2.4%, but they dropped 39.4% from the year-ago numbers of $2.82 per share. Revenues of $5.84 billion beat the expectations of $5.82 billion in the quarter. However, revenues declined around 20.6% YoY in the second quarter amid a decline in demand for memory prices and other global worries.
While the company has forecasted third-quarter revenues to remain weak, Micron expects the memory chip market to recover by the end of fiscal 2019.
Analysts’ upgrades and downgrades
While Cowen, UBS, J.P. Morgan, and Mizuho raised their price target on the stock on March 21, Stifel and Morgan Stanley slashed their price targets after Micron’s second-quarter results.
Citigroup has downgraded the stock to “sell” from “neutral.” However, Summit Insights Group raised its rating for Micron to a “buy” from a “hold.”