Here are two contrasting bull and bear views on Micron, which will be reporting on Monday after the close. I should note, though, that the bear says that "Micron has offered few updates on quarterly progress, adding to uncertainty heading into the report", an assertion that is patently false, as Micron preannounced much higher earnings a few weeks ago. But never mind little details.
1. Micron Shares Could Double Over the Next 12 Months, Says 5-Star Analyst
TipRanks
June 24, 2020
If one leading analyst’s forecast plays out, any investors feeling slightly deflated by Micron’s ( MU) underperformance so far in 2020 need not worry.
Ahead of next week’s fiscal 3Q20 earnings report, Rosenblatt analyst Hans Mosesmann is confident in the chipmaker’s ability to execute. What’s more, he expects the next quarterly results to be even better.
The 5-star analyst has a Buy recommendation on Micron shares, to go hand in hand with a lofty $100 price target. This conveys Mosesmann’s belief that Micron will soar by 107% over the next 12 months. (To watch Mosesmann’s track record, click here)
continues at finance.yahoo.com
2. Micron Stock Looks Like 'Dead Money' Heading Into Report
By ALAN FARLEY
Updated Jun 25, 2020
Micron Technology, Inc. ( MU) reports earnings next week, with analysts expecting earnings per share (EPS) of $1.05 on fiscal third quarter 2020 revenue of $5.05 billion. The stock ran in place after beating top- and bottom-line second quarter estimates in March and has added just four points between then and now, stuck around the midpoint of the first quarter decline. Even so, pre-earnings speculation is building, with the company having the potential to beat current consensus estimates, which range from $0.40 to $0.70 in EPS and $4.6 billion to $5.2 billion in revenue.
The PHLX Semiconductor Index ( SOX) carved a dramatic recovery off the March low, completing a round trip into the first quarter high in early June. A breakout in the following session posted an all-time high at 2,030.47 before turning tail in a rally failure that reinforces range resistance around the psychological 2,000 level. Micron is well positioned to benefit from sector tailwinds, but growing concerns about DRAM prices have kept a lid on gains so far this quarter.
Wall Street has been mixed about Micron's outlook in the past three months, with upgrades from BoA/Merrill, Cascend Research, and Cleveland Research, counter-balanced by downgrades from Needham, Goldman Sachs, Wedbush, BMO Markets, and Cleveland Research, which flip-flopped in the middle of the quarter. U.S. government restrictions on Huawei have also weighed on Micron stock, with the potential loss of that revenue stream. Micron has offered few updates on quarterly progress, adding to uncertainty heading into the report.
continues at investopedia.com |
