BofA Securities Reiterates Neutral on Micron, $140 Price Target

BofA Securities analyst Vivek Arya reiterated a Neutral rating and $140 price target on Micron Technology (NASDAQ: MU).

“Pre-market Micron raised its FQ4 (AugQ) outlook, driven by broad-based ASP strength in both DRAM and NAND.

In a follow-up session at a broker conference, MU noted: 1) shipment outlook views are unchanged from late-June despite potential pull-in activities in consumer (PC/phone) markets; 2) demand is strong across all end markets, with stronger pricing in both DDR5 and LP5; 3) HBM3e 12-high volumes have crossed over prior 8-high; 4) mgmt is confident in selling out CY26 HBM supplies, comprised of HBM3e 12-high and HBM4 (both are on 1b nodes); and 5) custom HBM with more logic in the base die is expected to ramp with HBM4e in CY27, could have ASIC-like structure with higher ROI, potentially more pricing differentiation.

Overall, we note multiple nearterm tailwinds that help lift ests and get OpM back to 30% long-term cross-cycle guide.

However, we reit. Neutral as CY26/27 unit/pricing visibility outside DC/AI remains low, with potentially limited HBM share gain opps given increasing Samsung competition.

We raise ests but maintain $140 PO, now at a modestly lower 2.2x CY26E P/B (vs 2.3x prior) on increased tariff/geopolitical concerns.

For reference, MU currently trades at 0.7x premium over comp SK Hynix, above historical ~0.4x and limiting much upside.”

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