TD Cowen Raises Micron Price Target to $550

TD Cowen analyst Krish Sankar raised the price target on Micron Technology (NASDAQ: MU) to $550.00 (from $500.00) while maintaining a Buy rating.

“MU guided for ~$19 in EPS for MayQ (vs Street @ $11.7) on 81% GMs.

We est. the guide implies 35% growth in DRAM ASPs Q/Q (following 65% in FebQ), bringing price per Bit to nearly double the prior cyclical high in C3Q21.

Even going into C2H26, we think there’s further upside to pricing than what’s implied in our model (45% increase exiting CY26 vs price exiting C1H26).

We model peak gross margins at 88% in C3Q26 and wouldn’t be surprised if we break the 90% mark. The worry is the theory that the stock peaks when GMs peak.

But, to debate whether the peak GM is “90% or 85%” or if its “mid-2026 or mid-2027” for a 5x P/ E stock is the wrong debate, in our view.

The focus is sustainability beyond CY27, and we think this call gave us a good enough indication, though not full clarity, that this demand/supply imbalance may translate into a sustainable gross margin outlook that is above 50% for CY28 and beyond (what we think the market is pricing in at ~$400 stock levels.”

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