KeyBanc raises Micron price target to $160 on strong results

Published 26/06/2025, 08:56
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Investing.com - KeyBanc raised its price target on Micron Technology (NASDAQ:MU) stock to $160.00 from $135.00 on Thursday, while maintaining an Overweight rating following the company’s strong fiscal third-quarter performance. According to InvestingPro data, Micron maintains a "GOOD" overall financial health score, with particularly strong momentum metrics. The stock has delivered an impressive 51.4% return year-to-date.

Micron reported fiscal third-quarter results that significantly exceeded market expectations, driven by improved pricing and product mix alongside healthy demand, particularly in DRAM and High Bandwidth (NASDAQ:BAND) Memory (HBM) segments. The company’s revenue grew by 71% compared to the previous year, reaching $31.3 billion in the last twelve months. InvestingPro analysis reveals 12 additional key insights about Micron’s growth trajectory and market position.

The chipmaker’s fourth-quarter guidance also surpassed analyst projections, with the company anticipating continued strength in AI data center demand, recovery in automotive and industrial sectors, and tightening DRAM supply that should drive favorable product mix and improved gross margins.

KeyBanc noted that while blended DRAM pricing decreased quarter-over-quarter, like-for-like pricing actually increased, reflecting stronger underlying pricing dynamics in specific product categories.

HBM products grew nearly 50% quarter-over-quarter, reaching a $6 billion run rate, with Micron now expecting to achieve its target DRAM market share in the low 20% range in the second half of the year, earlier than previous year-end expectations. Based on InvestingPro’s Fair Value analysis, Micron is currently trading near its Fair Value, with analysts setting price targets ranging from $60 to $172. The company maintains a healthy balance sheet with a current ratio of 3.13, indicating strong liquidity to support its growth initiatives.

In other recent news, Micron Technology reported strong financial results for Q3 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.91, exceeding the forecasted $1.59, and recorded revenue of $9.3 billion, surpassing the anticipated $8.84 billion. This performance marked a 37% year-over-year increase in revenue, driven by robust demand for DRAM and NAND products. Additionally, Micron announced a significant investment plan in U.S. manufacturing and R&D, amounting to approximately $200 billion over the next two decades. The company is also well-positioned in AI-driven memory markets, particularly with its leadership in HBM technology. Looking ahead, Micron provided guidance for Q4 2025, expecting revenue to reach $10.7 billion and a gross margin of 42%. Analysts from firms such as UBS and Bank of America Securities have shown interest in Micron’s strategic direction and market positioning. Despite these positive developments, Micron’s stock experienced a slight decline in both regular and aftermarket trading.

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