Micron Technology, Inc. (NASDAQ:MU) Analysts Are Pretty Bullish On The Stock After Recent Results

Micron Technology, Inc. (NASDAQ:MU) shareholders are probably feeling a little disappointed, since its shares fell 5.7% to US$132 in the week after its latest third-quarter results. It was a workmanlike result, with revenues of US$6.8b coming in 2.0% ahead of expectations, and statutory earnings per share of US$0.30, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Micron Technology

Taking into account the latest results, the most recent consensus for Micron Technology from 37 analysts is for revenues of US$37.7b in 2025. If met, it would imply a huge 77% increase on its revenue over the past 12 months. Earnings are expected to improve, with Micron Technology forecast to report a statutory profit of US$8.71 per share. Before this earnings report, the analysts had been forecasting revenues of US$36.7b and earnings per share (EPS) of US$8.47 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.3% to US$158per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Micron Technology, with the most bullish analyst valuing it at US$225 and the most bearish at US$90.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Micron Technology's past performance and to peers in the same industry. For example, we noticed that Micron Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 58% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 2.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 18% per year. Not only are Micron Technology's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Micron Technology following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Micron Technology going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Micron Technology that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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