UBS Raises Micron Price Target to $475

UBS analyst Timothy Arcuri raised the price target on Micron Technology (NASDAQ: MU) to $475.00 (from $450.00) while maintaining a Buy rating.

“Our latest round of industry checks again points to strengthening pricing dynamics across both core DRAM and NAND and our view is that shortages could now last through C2027 and even into C2028 – especially for DRAM.

Amid ongoing upside to GPU procurement number, we believe memory producers are having a hard time adding capacity fast enough due to lack of fab space, extended equipment lead times, and lack of field service/process engineers to install/qualify tools.

This is leading to a situation where the vast majority of all new capacity will be fully allocated to HBM, thus extending the severe shortages of DDR5 (and NAND).

We now see MU’s EPS of ~$60 in C2026 (Street ~$40) and approaching $85 in C2027 (Street ~$48) and we believe MU is trying to leverage the current market tightness into new long-term agreements that would concede some near-term pricing upside, but create more sustainable revenue and earnings over the next few years.

We move EPS estimates higher yet again, raise our PT from $450 to $475, and maintain Buy.”

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