I will remain invested here too. 🚀
Citi expects Micron Technology ( NASDAQ: MU ) to issue guidance that is well above expectations when the memory maker releases its financial results for the fourth quarter of fiscal 2025 later this month.
Micron shares rose 5% in early trading on Thursday.
"We expect the company to remain in line and well ahead of expectations due to higher DRAM and NAND sales and pricing," Citi analysts led by Christopher Danely said in an investor note Thursday. "We believe the continued uptick in the memory market is due to limited production and better-than-expected demand, particularly from the data center end-user market (55% of Micron revenue)."
Citi raised its revenue forecast for fiscal 2026 from $54.5 billion to $56 billion and its earnings per share from $14.62 to $15.02. The full-year earnings forecast is 26% above consensus. Citi expects revenue of USD 13 billion and earnings per share of USD 3.23 for the first quarter.
"We believe the DRAM recovery is intact, and our checks show that demand from the AI sector has increased sharply as C25 CSP capital spending increased by $18 billion during the reporting season. We believe this will lead to a potential upside for Micron," Danely added.
Citi reiterated its Buy rating and raised its price target from $140 to $175.
Micron plans to release its fourth-quarter results after the market on Tuesday, September 23. A consensus estimate is for adjusted earnings per share of $2.85 on revenue of $11.09 billion.
