Looking for a bright spot Tuesday morning? Look no further than Micron (MU) , shares of which are up 6.3%.
While the S&P 500, Nasdaq and Dow added to Monday's incredible losses at the open before reversing higher, there were but a few names in positive territory in premarket trading. Skyworks Solutions (SWKS) is one of them, thanks to a top and bottom line earnings beat. Same with General Motors Company (GM) . Micron, though, is higher thanks to raising its guidance.
After the close Monday, management upped its second-quarter revenue guidance to $7.2 billion to $7.35 billion, from its prior range of $6.8 billion to $7.2 billion. Consensus estimates were calling for $7.02 billion, so this is far better than expected.
But it gets better.
Management also upped its earnings per-share guidance range to between $2.70 and $2.75, from a prior range of $2.51 to $2.65. Wall Street was looking for $2.57.
The company also added some clarity to the C-suite, appointing David Zinsner from senior vice president to chief financial officer. The move is effective Feb. 19.
Despite the carnage we've seen on Wall Street, analysts have had time to digest Micron's news. Needham analyst Rajvindra Gill upgraded Micron stock to strong buy from buy and slapped a $76 price target on the stock. That implies more than 80% upside from current levels. Gill argues that demand for NAND remains robust.
Others chimed in as well. Stifel analysts bumped their price target even further, going from $75 to $85, implying almost 85% upside.
Citi and KeyBanc analysts were less zealous, although still bullish. Both outfits have a buy-equivalent rating, but with price targets of "just" $55 and $53, respectively. This represents upside of 15% to 19.5% from current levels.
Still, if 15% is the worst case from Tuesday's analyst reaction, Micron stock seems to be doing OK.
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