Citi Raises Price Target for Micron to $1,300 Amid Strong DRAM Pricing and Supply Constraints
Citi analyst Atif Malik raised the firm's price target on Micron (MU) from $1,150 to $1,300 while maintaining a 'buy' rating. The adjustment is based on stronger-than-expected DRAM pricing increases of over 60% and ongoing supply shortages expected through at least calendar year 2027. Malik anticipates Micron will report better-than-forecast results in fiscal Q4 as the undersupply continues to support memory prices. Micron's financial performance has been robust, with a market cap near $1.21 trillion and fiscal Q3 revenue surging by over 345% year-over-year to $41.46 billion. The company also secured 16 take-or-pay agreements totaling approximately $100 billion in guaranteed minimum revenue through 2030, supported by $22 billion in deposits. Despite a strong rally of nearly 277% this year, Micron trades at a forward PE ratio of just 7. Analysts expect consensus earnings per share for fiscal 2027 to rise significantly from earlier estimates.
Tickers: $MU
Topics: Citi analyst report DRAM pricing memory market Micron