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Is Micron Stock a Buy Ahead of Earnings? Analyst Weighs In

The 12 months is just up and operating however Thursday, January 7, will already see the discharge of an intriguing quarterly monetary assertion. Micron (MU) will report F1Q21 earnings after ending off final 12 months on a excessive.

The 12 months’s ultimate quarter put a layer of gloss on the chip large’s 2020. After a troublesome interval, the corporate shook off earlier woes as total reminiscence chip demand improved. The inventory picked up steam too – up 63% over the previous three months.

Heading into the print, Rosenblatt analyst Hans Mosesmann expects Micron to ship the products. The 5-star analyst charges MU a Purchase together with a $100 value goal. This determine implies ~30% upside from present ranges. (To observe Mosesmann’s monitor file, click here)

“We see the November quarter being pushed by energy throughout the board (in cellular, auto, industrial, PC, and cloud), except for enterprise which we see persevering with to be weak. As well as, we consider each DRAM and NAND noticed energy when it comes to each pricing and quantity,” Mosesmann commented.

Mosesmann’s estimates are in step with the corporate’s steerage, which known as for income of $5.73 billion and EPS of $0.71.

Waiting for the February quarter (F2Q21), the analyst sees “bias to the upside versus present consensus income estimates of down low single-digits q/q.” Though, the interval is “seasonally weak,” Mosesmann anticipates enhancing tendencies in DRAM “on the heels of cellular, cloud, PC, graphics, and auto/ industrial.”

In reality, the analyst stays resolutely buoyant on all issues Micron within the upcoming 12 months.

“We reiterate MU as a high choose for 2021, as Micron’s 1α DRAM and 176-layer NAND assist the corporate keep a aggressive place towards the competitors and profit the corporate in F2H21 and the reminiscence cycle continues its upswing on conventional provide/ demand dynamics,” the analyst mentioned.

General, nearly all of Mosesmann’s colleagues agree. The inventory at the moment has a Robust Purchase consensus ranking, based mostly on 20 Buys and 1 Maintain. At $85.62, the typical value goal may yield returns of 11%. (See Micron stock analysis on TipRanks)

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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is vitally vital to do your personal evaluation earlier than making any funding.

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