Selected stock price target news of the day - December 19th, 2024

By: Matthew Otto

Micron Technology Reports Mixed Q1 Results, Issues Weaker than Expected Q2 Guidance

Micron Technology reported first-quarter earnings posting adjusted earnings per share (EPS) of $1.79, beating the analyst estimate of $1.73 by $0.06. Revenue for the quarter totaled $8.71 billion, exceeding the consensus estimate of $8.68 billion.

These results reflect strength in Micron’s high-bandwidth memory (HBM) chips, used in artificial intelligence applications, with HBM revenue more than doubling sequentially. However, consumer markets such as PCs and smartphones remain weak, with global PC shipments declining 1.3% year-over-year in Q3 2024, according to Gartner.

For Q2 2025, Micron expects EPS in the range of $1.33 to $1.53, well below the consensus estimate of $1.97. Micron also forecasted revenue between $7.7 billion and $8.1 billion, compared to the consensus of $8.97 billion, representing a $1 billion shortfall.

Analysts Adjust Ratings Amid Weak Guidance and Consumer Market Struggles

Baird analyst Tristan Gerra maintained an Outperform rating but lowered the price target to $130 from $150.
Needham analyst Quinn Bolton kept a Buy rating while reducing the price target to $120 from $140.
Stifel analyst Brian Chin adjusted the price target to $130 from $135.
BofA Securities analyst Vivek Arya downgraded to Neutral rating.
UBS analyst Timothy Arcuri continued with a Buy rating but cut the price target to $125 from $135.

Which Analyst has the best track record to show on MU?

Analyst C J Muse (CANTOR FITZGERALD) currently has the highest performing score on MU with 9/11 (81.82%) price target fulfillment ratio. His price targets carry an average of $49.69 (49.54%) potential upside. Micron Technology stock price reaches these price targets on average within 450 days.

Microsoft and OpenAI Escalate the AI Battle Against Google’s Search Dominance

Microsoft-backed OpenAI has intensified competition in the online search market by expanding access to its ChatGPT Search feature. Previously limited to subscribers, the tool is now available to all users, granting more than 300 million weekly users the opportunity to shift search habits away from Google.

OpenAI’s announcement highlights efforts to integrate up-to-date web information, positioning ChatGPT as a credible alternative to traditional search engines. According to a September survey by Evercore, 8% of over 1,300 U.S. respondents identified ChatGPT as their primary search engine, underscoring its potential to chip away at Google’s market share.

Microsoft’s investment in OpenAI has been instrumental in fueling this competitive push. Analysts note that Alphabet’s response, such as its recent launch of Gemini 2.0 and advanced video-generation tools, is indicative of the high-stakes battle for dominance in the AI and search markets. However, with mobile AI adoption on the rise, Microsoft’s backing of OpenAI and its advancements could further disrupt the search landscape, pressuring Alphabet to innovate rapidly to maintain its position.

Analyst Increases Price Target Amid AI Competition

UBS analyst Karl Kierstead maintained a Buy rating and raised the price target from $500 to $525.

Which Analyst has the best track record to show on MSFT?

Analyst Mark Murphy (JPMORGAN) currently has the highest performing score on MSFT with 25/27 (92.59%) price target fulfillment ratio. His price targets carry an average of $58.65 (14.43%) potential upside. Microsoft stock price reaches these price targets on average within 117 days.

Jabil Reports Q1 2025 Results, Beats Revenue and EPS Estimates, Raises Full-Year Guidance

Jabil exceeded analyst expectations with its first-quarter fiscal year 2025 results, reporting net revenue of $7.0 billion, surpassing the consensus estimate of $6.61 billion. Q1 EPS came in at $2.00, beating the analyst estimate of $1.88 by $0.12. U.S. GAAP operating income was $197 million, with U.S. GAAP diluted EPS of $0.88.

Jabil has revised its full fiscal year 2025 guidance, now forecasting net revenue of $27.3 billion, core operating margins of 5.4%, and core diluted EPS of $8.75, slightly above the consensus estimate of $8.69.

Looking ahead, Jabil provided its second-quarter 2025 guidance, projecting EPS between $1.60 and $2.00, compared to the consensus of $1.80. For Q2, Jabil expects revenue in the range of $6.1 billion to $6.7 billion, exceeding the consensus estimate of $6.28 billion.

Analysts Update Ratings and Price Targets Following Q1 2025 Results

UBS analyst David Vogt maintained a Neutral rating and raised the price target from $128 to $152.
Goldman Sachs analyst Mark Delaney kept a Buy rating while increasing the price target from $145 to $160.

Which Analyst has the best track record to show on JBL?

Analyst Matthew Sheerin (STIFEL) currently has the highest performing score on JBL with 14/16 (87.5%) price target fulfillment ratio. His price targets carry an average of $13.53 (9.91%) potential upside. Jabil stock price reaches these price targets on average within 118 days.