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Micron Technology (MU) is scheduled to report results of its fiscal third quarter after the market closes on Wednesday, June 26, with a conference call scheduled for 4:30 pm ET. What to watch for:

GUIDANCE: Along with its last report, Micron guided for Q3 earnings per share of 38c-52c on revenue of $6.4B-$6.8B. At the time, analysts expected the company to report Q3 EPS of 20c on revenue of $6B, but those expectations have since changed to 51c and $6.67B, respectively. In addition, Micron said on its quarterly call at the time that it forecast 2024 bit demand growth to be near the long-term compound annual growth rate for DRAM and around mid-teens for NAND and reiterated its FY24 capital expenditures view of $7.5B-$8B.

PRICE TARGET HIKES: In the weeks leading up to Micron's quarterly report, several analysts have raised their price targets on the stock, with Baird on Monday upping its target to $172 from $150 and maintaining an Outperform rating on the shares. The firm raised its target to reflect Micron's rising HBM exposure. HBM is reminiscent of the early days of NAND flash, with similar bit CAGR and an even higher gross margin profile potential. Near-term, memory pricing trends remain strong with continued price increases expected throughout the year.

Also on Monday, Citi raised the firm's price target on Micron to $175 from $150 and kept a Buy rating on the shares ahead of the company's fiscal Q3 results on June 26. The firm expects Micron to post results and guidance above consensus estimates given the DRAM upturn and its increasing artificial intelligence memory exposure. Micron should continue to trade at a premium to its historical range given its AI exposure, the analyst tells investors in a research note. Citi reiterates Micron as its top pick into the earnings report.

Meanwhile, Wolfe Research analyst Chris Caso late last week raised the firm's price target on Micron to $200 from $150 with an Outperform rating, with the firm raising estimates on stronger industry conditions and optimism regarding HBM. Wolfe added that near-term conditions are not the reason for the bullish view, but rather the company's earnings per share power longer-term, seeing a plausible case to $20 EPS.

Additionally, Raymond James raised the firm's price target on Micron to $160 from $130 and maintained an Outperform rating on the shares ahead of the Q3 earnings report. The firm expects a beat and raise on pricing strength, which should offset the volume impact from Taiwan earthquake, the analyst tells investors in a research note. Raymond James now sees over $12 peak EPS power in this cycle and believes that a higher multiple is justified given the prospect of a longer and stronger cycle and secular growth from HBM.

BAT PROBLEM: Last week, Bloomberg's Mackenzie Hawkins reported that Micron has yet to start construction on a multibillion-dollar chipmaking factory planned in New York as the company discovered two endangered North American bat species living in White Pine Commerce Park as part of its environmental review process and now has to find or create a new habitat for the critters. The bat issue is part of a much broader state and federal review process that's pushed Micron's groundbreaking into 2025, but a "delay of a few months is by no means a death knell for the project nor the program overall," the report added.

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