TD Cowen Raises Micron Price Target to $660
TD Cowen analyst Krish Sankar raised the price target on Micron Technology (NASDAQ: MU) to $660.00 (from $550.00) while maintaining a Buy rating.
“Our work indicates LTAs are being structured around a GM framework of ~60% at the floor and high-80s% at the ceiling.
The next leg for the stock is more about durability than earnings upside (we do not see much from here for CY27), and AGI CPU demand can help the duration narrative for DRAM.
We remain Buy-rated on MU and move PT to $660 (6x CY27E). Interestingly, MU stock at ~5x CY27 PE already appears to be signaling a gross margin correction towards the 60% GM floor post-CY27.
The problem is, historically, the actual transition from high GMs to lower GMs has been a near-term negative for the stock, which is why we expect the stock to climb a wall of worry in 2H.
For May/AugQ, we think MU EPS might beat Street by 20% in MayQ ($23 vs $19 St.) and 18% in AugQ ($27 vs $23 St.). DDR ASP assumptions CQ2 +70%, CQ3 +10%, CQ4 +5%.
CY27 view remains at $110 (vs $106 St.) as pricing view exiting CY26 remains unchanged.”
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