UBS Analyst Reiterates Buy Rating for Micron with Price Target of $1,625
UBS analyst Timothy Arcuri has reiterated his buy rating and price target of $1,625 per share for Micron Technology (NASDAQ: MU), ahead of the company's fourth-quarter earnings report on September 30. The stock has surged over the past year due to strong demand in memory chips driven by AI growth, with revenue growing at triple-digit rates and operating margins reaching an impressive 80%. Despite recent volatility, Arcuri sees continued upside as supply-demand imbalances widen. Arcuri also highlights potential tailwinds from share buybacks. Restrictions on repurchases under the CHIPS Act will expire in December, opening up new avenues for shareholder value creation. The stock is currently trading at a forward P/E of less than 7 times fiscal 2027 expected earnings and has room to grow as Micron could ramp up buyback spending significantly. The analyst predicts memory prices may start falling by the second half of 2028, but notes that strategic pricing agreements will help maintain profitability. With strong financials including a low debt load after paying down $9.4 billion this year and robust net income expected in Q4, Micron is well-positioned for continued growth.
Tickers: $MU
Topics: analyst rating buy recommendation memory chip market Micron UBS