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Micron Technology, Inc (NASDAQ: MU) reports May quarter earnings on June 30, after market close.
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Rosenblatt analyst Hans Mosesmann expects sales and non-GAAP EPS to be in-line with his sales and EPS estimates of $8.70 billion and $2.46, slightly above the consensus of $8.65 billion and $2.46, respectively.
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He sees the May quarter led by data center, auto, and industrial strength offset by the mixed or weaker consumer, low-end PC, and mobile handsets.
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Across the board, including in data center, mobile, PC, and auto, and better than expected bit shipment and pricing trends for DRAM and NAND.
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For the August quarter guide, he noticed some risk to his aggressive over 10% q/q sales growth assumption on mixed PC datapoints.
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However, he is comfortable in the company exceeding consensus mid-single-digit sales growth on data center product/content ramps as non-memory component shortages become less of a nasty headwind.
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He views DRAM bit demand growth for 2022 (and 2023, for that matter), exceeding ample supply of 16%-18%, as infrastructure-related end markets offsetting potential unit inflation-driven headwinds in consumer, PCs, and mobile.
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He expects management to reiterate a go-forward memory/storage market as memory, in particular, becomes a gating factor in compute performance enabling the company to see OM levels of 30% plus, FCF >10%, and EBITDA margins in the low-50% level.
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He rated the stock as a Buy with a price target of $165.
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Price Action: MU shares traded lower by 3.51% at $55.83 on the last check Wednesday.
Latest Ratings for MU
Date |
Firm |
Action |
From |
To |
---|---|---|---|---|
Feb 2022 |
Wedbush |
Upgrades |
Neutral |
Outperform |
Jan 2022 |
Goldman Sachs |
Maintains |
Buy |
|
Jan 2022 |
New Street Research |
Initiates Coverage On |
Buy |
View More Analyst Ratings for MU
View the Latest Analyst Ratings
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