Svmuu reported that Goldman Sachs released a report, anticipating that sustained market tightness will drive Micron's performance significantly above market consensus expectations and the company's own guidance. The bank had previously raised its overall industry outlook and expects tight conditions to persist throughout fiscal year 2027, leading to higher pricing and margins for the industry.
Given the substantial stock price rally and the potential optimistic sentiment stemming from long-term customer agreements, investor positioning remains very bullish. Goldman Sachs expects Micron's revenue for the fiscal third quarter ending May 31 to be approximately 9% above market consensus, and driven by upward pricing momentum, it guides for significant sequential revenue growth in the final fiscal quarter ending August 31.
The bank estimates last fiscal quarter's revenue, gross margin, and earnings per share at $37.6 billion, 83.4%, and $22.07 respectively, compared to market consensus estimates of $34.4 billion, 81.9%, and $19.74. For fiscal year 2026, Goldman Sachs' revenue/earnings per share estimates for Micron are 30% and 36% above market consensus. Goldman Sachs raised its target price for Micron from $400 to $900, with a "neutral" rating. (Jin Shi)