Deutsche Bank Affirms Buy on Micron, $1,550 Price Target

Deutsche Bank analyst Melissa Weathers reiterated a Buy rating and $1,550 price target on Micron Technology (NASDAQ: MU).

“Micron once again delivered a strong print/guide on the topline (+7% vs.

DBe), though there was some incremental squishiness on the margin front this quarter.

The company believes demand across the memory hierarchy accelerated once again in the quarter from AI, and now expects the supply-demand imbalance to worsen in 2027 and 2028 from 2026 levels (consistent with our industry models).

The company continues to execute to its SCA strategy, noting that the number of contracts has now risen to 26 and offering an additional disclosure that ~3/4 of revenues under these contracts employ specific pricing bands.

Notably, Micron flagged elevated costs in the quarter (mostly incentive-related) which are weighing on GMs and opex.

Nevertheless, MU sees a path towards steadily growing revenues and pricing into FY27, with GMs set to expand off the Nov-qtr bottom.

All told, we remain highly constructive on the memory sector and MU in particular, with industry fundamentals seeming to be structurally sound for the foreseeable future.

While we expect volatility in memory narratives to persist in this AI environment, we believe MU’s co-specific drivers and robust supply-demand backdrop can support through-cycle earnings power well above historical trends.

Reiterate Buy rating and $1,550 P/T.”

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