Investors may be looking at commercial real estate risk all wrong and missing these opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
- Looming Commercial Real Estate Loan Crisis: Investors are warned about a wave of maturing commercial real estate loans, with 30% due between 2024 and 2026, leading to potential defaults as property values decline.
- Flawed Risk Metrics: Metrics based on CRE concentrations may not accurately reflect a bank's risk exposure, prompting investors to consider loan types and sizes held by banks.
- Troubled Loans and Default Risks: Concerns rise as past-due real estate loans increase, especially in larger banks with high-profile office property exposures in metropolitan areas.
- Considerations Beyond CRE Concentrations: Investors advised to look at average loan size, asset classes, and other negative forces impacting banks beyond just CRE exposure.
- Stock Picks and Market Sentiment: Analysts recommend stocks like NBT Bancorp, Webster Financial, and Valley National Bancorp, while larger banks show signs of improving sentiment despite challenges.
Analyst Views on MU
Wall Street analysts forecast MU stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MU is 336.12 USD with a low forecast of 235.00 USD and a high forecast of 500.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
26 Analyst Rating
24 Buy
2 Hold
0 Sell
Strong Buy
Current: 397.580
Low
235.00
Averages
336.12
High
500.00
Current: 397.580
Low
235.00
Averages
336.12
High
500.00
About MU
Micron Technology, Inc. provides memory and storage solutions. The Company delivers a portfolio of high-performance dynamic random-access memory (DRAM), NAND, and NOR memory and storage products through its Micron and Crucial brands. The Company's products enable advancing in artificial intelligence (AI) and compute-intensive applications. Its segments include Cloud Memory Business Unit (CMBU), Core Data Center Business Unit (CDBU), Mobile and Client Business Unit (MCBU) and Automotive and Embedded Business Unit (AEBU). CMBU is focused on memory solutions for large hyperscale cloud customers, and high bandwidth memory (HBM) for all data center customers. CDBU is focused on memory solutions for mid-tier cloud, enterprise, and OEM data center customers and storage solutions for all data center customers. MCBU is focused on memory and storage solutions for mobile and client segments. AEBU is focused on memory and storage solutions for the automotive, industrial, and consumer segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
