Wolfe Research Maintains Outperform on Micron, $160 Price Target

Wolfe Research analyst Chris Caso reiterated an Outperform rating and $160 price target on Micron Technology (NASDAQ: MU).

“MU pre-announced its F4Q ahead of a competitor conference this morning, indicating revenue/GM at the midpoint is expected to be ~$500mn/250bps better than expected, reflecting better pricing, particularly in DRAM.

In prior comments, MU mgmt indicated a constructive outlook with Rev/GM improvement driven by tighter supply (particularly for D4 DRAM) and improving mix, with DC/AI products growing as a proportion of the mix.

HBM traction remains strong and we expect MU to achieve its DRAM-like share target this year, per prior guidance.

We think sentiment toward MU/memory tends to be bearish, due to concerns about the effect of potential pull-ins on the 2H CY25 outlook, in addition to the implications from Samsung’s possible qualification on HBM4/Rubin at NVDA.

The positive preannouncement and pricing commentary however indicate – so far, so good. More following the company’s presentation. Details.

MU updated its previous guidance for its F4Q25, indicating that the midpoint of its revenue guidance is expected to be ~$500mn above its prior expectations, driving an additional ~250bps GM at the midpoint.

In addition, MU anticipates OpEx to be a touch above its prior guidance, now $1.22bn (vs prior $1.20bn), driving implied OpM ~280bps higher than previous guidance to ~33.6%.

EPS guidance was increased to $2.85 from $2.50. MU noted the revised guidance reflects improved pricing, particularly in DRAM, and strong execution.”

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