RBC Capital Raises Micron Price Target to $1,200
RBC Capital analyst Srini Pajjuri raised the price target on Micron Technology (NASDAQ: MU) to $1,200.00 (from $525.00) while maintaining an Outperform rating.
“Our view: We are raising estimates on stronger pricing and volume assumptions.
Current DRAM upcycle is in its 12th quarter (vs 8-9 qtrs in 2014/2018 cycles) and we see a credible path to another 5-6 quarters.
Capex trends and GenAI demand continue to be robust while the shift to inferencing/Agentic AI is driving secular growth in Memory content.
We expect industry supply growth to remain muted until late 2027 due to limited clean room space and structural headwinds from HBM conversion.
While the ongoing debates around duration, long-term agreements (SCAs), and valuation could continue, we see little on the immediate horizon to materially ease DRAM supply tightness.
As such, we believe a higher peak multiple is warranted and raise our PT from $525 to $1,200 (~10x CY27E EPS). Reiterate Outperform.”
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