In today’s briefing:
- Memory Monitor: Upcoming Micron Results & Outlook Key Amid Reports of Inventory Liquidation
- Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded
- SPX Corporation – These Are The 4 Biggest Challenges In Its Path!
- Elbit Systems Ltd –
- LE: European Tour: Creating a New Vision; Reiterate Buy, $20 PT
- Varex Imaging Corp (VREX US): No Near-Term Respite Visible From China Headwinds
Memory Monitor: Upcoming Micron Results & Outlook Key Amid Reports of Inventory Liquidation
- Memory stocks underperformed the market, falling sharply with the recent overall market rout and failing to rebound sufficiently with the latest market rally.
- Leading Memory names Micron, SK Hynix, Samsung are all substantially below their 52-week highs after market reports of slowing memory demand from PC and mobile industries and inventory liquidation.
- Taiwan names Nanya Tech, Silicon Motion, Phison are all we below their highs. Micron results on September 25th MT will provide a major outlook update for the market.
Memory Monitor: Micron Results Show Clear Signs of Memory Market Upswing; DRAM Growth Upgraded
- Micron’s latest results show a clear improvement in the Memory cycle. The company’s gross margin increased and guided for a further strong margin increase next quarter.
- Micron increased its overall DRAM industry growth forecast while maintaining its NAND flash forecast. Micron reiterated expectations for FY2025E to deliver record revenue for the company, with improving profitability.
- Positive news for fallen Memory industry shares — Within our Memory universe we have Structural Long ratings for Micron Technology (MU US), SK Hynix (000660 KS), and Silicon Motion Technology (SIMO US).
SPX Corporation – These Are The 4 Biggest Challenges In Its Path!
- SPX Technologies has demonstrated robust growth and strategic execution in its Q2 2024 results, prompting an increase in full-year guidance.
- The company’s business segments, particularly the HVAC (Heating, Ventilation, and Air Conditioning) and Detection & Measurement, have shown substantial growth and profitability improvements, driven primarily by increased operational efficiencies, strategic acquisitions, and strong demand in diverse markets such as data centers, health care, and industrial facilities.
- Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.
Elbit Systems Ltd –
- Zacks Small-Cap Research Note for Elbit Systems (ESLT)
LE: European Tour: Creating a New Vision; Reiterate Buy, $20 PT
- We are reiterating our Buy rating, projections and $20 price target for Lands’ End after visiting the company’s European headquarters in Oakham, United Kingdom and meeting with management.
- We believe, with operations overwhelmingly focused on the United Kingdom and German consumer, there remains multiple growth opportunities, from new categories, expansion into Europe-only looks, lower discounting and continuing to upgrade the customer mix to more lifestyle and features, rather than pricing, driven.
- Further, with Europe taking the lead in terms of quicker buys and reacting/setting fashion trends, they will increasingly have a roll in setting the product pace for the United States operations.
Varex Imaging Corp (VREX US): No Near-Term Respite Visible From China Headwinds
- Varex Imaging Corp (VREX US) reported 10% YoY drop in revenue and a squeeze in profits as well in Q3FY24, driven by weakness in Medical segment business.
- China market softness continues to drag the operating performance of the company. The woes faced in China does not appear to subside quickly in the near foreseeable future.
- The company has guided for Q4FY24 sales and EPS in the range of $190-210M and $0.00-0.15, respectively, representing significant drop from year-ago quarter.
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