Stifel Raises Micron Price Target to $300

Stifel analyst Brian Chin raised the price target on Micron Technology (NASDAQ: MU) to $300 (from $195) while maintaining a Buy rating.

“Memory has been on a tear. Further strengthening in AI infrastructure demand has proven a tipping point, and memory prices are rallying hard into yr-end.

Next week, we expect Micron to report and guide for meaningful upside to its F1Q(Nov) results and F2Q(Feb) outlook. Buyer capitulation is a good thing.

Yet the classic cyclical concern is capacity additions/supply growth accelerating to capitalize on current conditions.

As yet, we believe suppliers are instead prioritizing 1) full support of higher-value cloud memory products/customers, while also 2) re-establishing a higher, more profitable price/Gb for smartphone and client-PC products.

In the short-run, operating at higher utilization and lower inventory, output is more fixed and the concern for Micron is not about too much supply but rather too little.

Exiting retail memory (Crucial) should help re-direct bits from lower-to-higher value products. Profit and bit optimization, amidst sustained positive industry conditions, keep us positive on Micron.”

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