Cantor Fitzgerald Reiterates Overweight on Micron, $2,000 Price Target

Cantor Fitzgerald analyst C.J.

Muse reiterated an Overweight rating and $2,000 price target on Micron Technology (NASDAQ: MU).

“With shares at just 5.6x/4.5x these estimates, we think Micron’s shares are simply too cheap to ignore.

As for important incremental takeaways, we highlight the following: 1) Mgmt expects supply for both memory and storage to remain in undersupply into FY27/28 – so not just FY27 but also FY28, 2) More than 75% of 2027 output is already committed via SCAs (50% through 2030 as # of SCAs grew from 16 to 26), with majority of discussions today around 2028 (and beyond), 3) On the supply side, there remain structural headwinds including lack of clean room space, HBM trade ratio limiting bit growth, and the length in time it takes to bring on supply, 4) GMs were guided to trough in F1Q27 at 86.25% and then grow throughout all of FY27 (cons 85.5% for all of FY27), 5) Capex was indicated at $25B for 1HFY27 and higher in 2H, suggesting ~$55B+ in FY27 vs. prior indication of $50B +/- with incremental spending largely focused on construction spending rather than WFE, 6) mgmt sees FCF accelerating significantly higher from the $33B in the August Q – and we agree, as we model FCF of more than $333B+ over the next 8 quarters, representing ~30% of total outstanding shares, and 7) beginning December 9th the company plans to aggressively buyback shares (limited until then because of the CHIPS Act; seeking BOD authorization beyond current buyback program of $2.2B imminently).

With aggressive buybacks just 10 weeks away, you want to own MU. We reiterate our Overweight rating and $2,000 price target. MU remains a Top Pick.”

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