Deutsche Bank analysts provided their outlook on Micron Technology, Inc. (NASDAQ:MU) ahead of the company’s upcoming Q3 earnings, expected to be reported on June 30. The analysts anticipate the company to report in-line results and guidance, but with a few moving parts that should largely offset each other.
Weakness in consumer PC and smartphones may be leading to a lower DRAM price increase than expected, but that should be offset by better NAND prices and higher share repurchases in the quarter.
The analysts expect overall demand to remain solid in H2/22 driven by strength in enterprise and data centers. Longer term, the analysts are encouraged by the company’s willingness to provide a cross-cycle financial model at its analyst day last month that implies a normalized EPS of $8.00-9.00.