Needham Reiterates Buy on Micron, $1,650 Price Target

Needham analyst N.

Quinn Bolton reiterated a Buy rating and $1,650 price target on Micron Technology (NASDAQ: MU).

“Micron reported a beat and raise quarter citing continuing supply/demand imbalances. Our key takeaways include: 1) 26 SCAs have now been signed which represent >35% of revenue through CY30.

New discussions on SCAs include higher pricing based on current market conditions and outlook; 2) Execution on HBM is continuing as gross margins are approaching DRAM margin levels.

Management added that the vast majority of CY27 HBM bit supply is under contract with significant price increases coming on; 3) MU expects the supply/demand environment to be much tighter in CY27 and CY28 versus CY26.

DRAM and NAND industry bit shipments are expected to grow in the low-20% range and mid-20% range, respectively, for both CY27 and CY28.

We reiterate our PT of $1,650, now based on a <8x multiple of our FY28 NG EPS estimate of $215.00.”

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