Micron trading down due to rising expectations, says Wolfe Research

Wolfe Research says Micron Technology positively pre-announced this morning but the stock is down due to rising expectations given increasing pricing trends heading into year-end. Management expects pricing trends to continue to improve for the rest of fiscal 2024, with gross margin now expected to be positive, the analyst tells investors in a research note. The firm points out that Micron is now trading at a low-teens multiple from what it would consider to be $6 in mid-cycle earnings per share power. Wolfe remains constructive on the stock with an Outperform rating and $80 price target.