Chip maker Micron Technology is expected to release its quarterly earnings report at the end of the month, and most analysts agree that the numbers won’t be good. However, that is still not the reason to bail on the company’s stock, according to Citigroup’s analyst Christopher Danely.
In a note sent to clients on Wednesday, Danely shared that Micron’s earnings report will most likely come below the Wall Street estimates and include significant inventory write-down.
“We expect the company to report and guide below consensus estimates along with a large write-down of inventory,” Danely wrote.
However, Danely kept the Micron stock rating at a Buy and set the target price to $75 per share. According to him and his team, the market for Micron’s products is “bottoming out,” and the demand is expected to pick up in the future.
Micron will report its second-quarter results on 28 March. Wall Street estimated $3.80 billion in revenue and a consensus 75 cents per share loss.
Micron stock has been almost 3 percent up on Thursday, coming at $59.77 per share to start the day. The company’s shares saw an 18 percent jump since the start of 2023 but still remain more than 20 percent down in the past year.