RBC Capital Initiates Coverage on Micron at Outperform
RBC Capital analyst Srini Pajjuri initiates coverage on Micron Technology (NASDAQ: MU) with an Outperform rating and a price target of $425.00.
“The key debate is mostly about the duration of current Memory upcycle.
Surging GenAI demand and much-improved supply discipline have created extreme tightness in Memory, sparking discussions about long- term agreements.
While investor skepticism about LTAs in commodity Memory could remain, limited clean room space and structural supply headwinds could extend the current upcycle well into 2027.
HBM content is growing at a 50%+ rate, HBM4 transition is a material tailwind, and Micron has strong roadmap.
We see $50+ peak earnings potential and believe a higher peak multiple is appropriate due to non-commodity HBM mix. Initiate at Outperform.”
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