Mizuho Raises Micron Price Target to $290

Mizuho analyst Vijay Rakesh raised the price target on Micron Technology (NASDAQ: MU) to $290 (from $270) while maintaining an Outperform rating.

“MU reported very strong NovQ rev/EPS at $13.6B/$4.78, above $13B/$3.95 consensus, with a record high guide of $18.7B/$8.42 for FebQ, ~30%/74% above as we noted (LINK).

Key points: 1) DRAM/NAND contract pricing expected up ~90-120% q/q (Ex-1/2) driving FebQ GMs guide up 11.2ppt q/q to 68% as C27E supply constraints satisfying only 50-75% of PC/smartphone/Autos demand sustain GM strength, 2) HBM growing strongly (new record) but potentially to shift capacity away to DDR5 with 3:1 trade ratio and clean room limited, 3) PCIe6 G9 122-245TB QLC eSSDs seeing strength we believe with “nearline NAND” in AI servers driving 80% lower power vs HDD, and 4) F26E Capex raised to $20B (prior $18B, cons: $19.4B) and pulling in Idaho fab by ~3 months to midC27E.

Reiterate Outperform, Raise estimates/PT to $290 from $270.”

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