BofA Securities Upgrades Micron to Buy, $300 Price Target

BofA Securities analyst Vivek Arya upgraded Micron Technology (NASDAQ: MU) from Neutral to Buy with a price target of $300 (from $250).

“We are changing our view about 1) durability of the memory cycle (persists into CY26E on restrained supply additions and AI demand and HBM 3x by CY28E), and 2) quality of MU’s balance sheet (30% FCF margin, net cash positive, can start to buyback stock significantly in another year as Chips Act requirements get over).

We are raising our FY26/27/28 pf-EPS by 62%/80%/42%, translating into CY26/27E pf-EPS at $37.25/$37.00, also up over 70% from prior forecast and upgrade to Buy from Neutral.

Raise PO to $300 from $250 on 2.3x CY27 P/B, a more mid-cycle level on balance between stronger memory demand offset by more moderate model leverage going forward, from 2.6x P/B multiple prior (historical range 0.8x-3.1x).

Key risks include volatility of AI demand (though MU claims to have agreements in place), pricing of traditional memory, incremental industry supply, and chance that current 68% GM/60% OpM are close to peak levels.”

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