TD Cowen Reaffirms Buy on Micron, $1,600 Price Target

TD Cowen analyst Krish Sankar reiterated a Buy rating and $1,600 price target on Micron Technology (NASDAQ: MU).

“Eighth Inning on Margin Expansion, Fourth on Demand; Despite being late innings in terms of gross-margin expansion (~80% through the cycle), we think this remains mid-cycle for demand.

The stock had already started re-rating before the AI delay headlines (first time expectations stall, but the stock is resilient), and we think that can resume once this is behind us.

Risk/reward remains favorable and reiterate Buy heading into the print.

We expect Micron to guide toward ~$37 of EPS for NovQ (vs. $35 our est./Street), a modest single-digit beat against an average ~35% beat the prior three quarters.

We expect gross margins to peak at ~89% in CQ2:27, an 18-quarter margin-expansion cycle that puts us more than 80% through it today.

The magnitude of positive earnings revisions is likely to slow from here.”

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