Micron Technology Inc. faces a heightened bar of its own making for the rest of the year, as widespread chip shortages push up prices for its core memory chips.
Read: Worldwide chip shortage expected to last into next year, and that’s good news for semiconductor stocks Mizuho analyst Vijay Rakesh, who has a buy rating on Micron and a $100 price target, said he sees the the second half of 2021 as an exceptional cycle for memory-chip makers as “growth shows more potential upside after recovering from pricing and data-center demand headwinds in 2H20/1H21.”
What to expect Earnings: Micron on average is expected to post adjusted earnings of 95 cents a share, up sharply from 66 cents a share expected at the beginning of the quarter, based on 29 analysts surveyed by FactSet. Micron forecast earnings of 93 cents to 98 cents a share at the beginning of March, up from its previous forecast of 68 cents to 72 cents a share.
What analysts are saying Evercore ISI analyst C.J. Muse, who has an outperform rating and a $135 price target, said in a note related to Micron’s hiked forecast that broader chip shortages will keep demand high.
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