Micron stock price target raised to $155 from $120 at UBS on HBM growth

Investing.com - UBS raised its price target on Micron Technology (NASDAQ:MU) to $155 from $120 on Thursday, while maintaining a Buy rating on the memory chipmaker’s stock. The stock currently trades at $127.25, with InvestingPro data showing the company has achieved an impressive 71% revenue growth over the last twelve months.

The price target increase follows Micron’s recent quarterly results that met or slightly exceeded investor expectations for High Bandwidth (NASDAQ:BAND) Memory (HBM) revenue and gross margin performance, according to UBS. The company’s strong financial position is reflected in its current ratio of 3.13, indicating robust liquidity to meet short-term obligations.

HBM is becoming a significant portion of Micron’s DRAM business, representing approximately 6-7% of DRAM bits but 19-20% of allocated capacity based on UBS estimates, creating supply constraints that allow Micron to allocate chips to higher-value markets.

UBS believes this dynamic will intensify in 2026 until Micron and industry peers add new manufacturing capacity, which the firm expects will be done "carefully and strategically" to maintain favorable market conditions.

The firm has adjusted its valuation approach to assign a higher multiple to Micron’s HBM revenue and earnings, slightly increasing its 2026 earnings per share estimate from approximately $13 to $14, reflecting the growing importance of HBM in creating "more durability and stability" in Micron’s business.

In other recent news, Micron Technology has seen several analysts raise their price targets following strong quarterly earnings and optimistic future projections. Wells Fargo (NYSE:WFC) increased its price target to $170, citing robust growth in Micron’s high-bandwidth memory (HBM) segment, which saw a 50% revenue increase quarter-over-quarter. The firm also highlighted Micron’s expanding customer base and projected a significant market for HBM by 2028. Wolfe Research set a new price target of $160, attributing this to anticipated cyclical recovery in the semiconductor industry and Micron’s participation in HBM growth. Citi raised its target to $150, noting better-than-expected results driven by strong pricing and shipments, particularly in NAND flash memory products. Stifel also increased its target to $145, emphasizing the favorable product mix and strengthening datacenter demand that bolstered Micron’s gross margin outlook. Raymond (NSE:RYMD) James lifted its price target to $150, highlighting Micron’s impressive HBM revenue growth and strong performance in the mobile segment. These developments reflect a positive outlook for Micron, with analysts recognizing its strategic position in the evolving memory chip market.

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