Freedom Broker Reiterates Buy on Micron, $1,600 Price Target

Freedom Broker analyst Egor Tolmachev reiterated a Buy rating and $1,600 price target on Micron Technology (NASDAQ: MU).

“Micron’s FQ4’26 beat and FQ1’27 guide were strong, but the bigger message is duration: management now expects 2027 and 2028 to be tighter than 2026, and a deeper contract book underwrites that view.

Revenue, gross margin and EPS cleared consensus, our estimates and the top of guidance, with pricing again doing most of the work, and the FQ1’27 guide sits above consensus on revenue and EPS.

Industry bit growth remains capped by cleanroom space rather than demand, and the SCA book has grown to 26 agreements, ~$150bn of RPO and $32bn of customer commitments, with new contracts priced off today’s tighter market.

Costs are rising with growth: a ~$1bn cost headwind leaves FQ1’27 as the gross-margin floor for the year, FY27 OPEX is growing faster than guided three months ago, and FY27 capex steps up to more than $50bn, skewed to cleanrooms that add bits only from late CY28.

We raise our estimates and see the capital-return step-up from December 9 as the next major catalyst. We reiterate Buy with a $1,600 price target.”

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