Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - TD Cowen has reiterated its Buy rating and $150.00 price target on Micron Technology (NASDAQ:MU) following the company’s positive preannouncement of its August quarter results. According to InvestingPro data, Micron, currently valued at $139.7 billion, is trading near its Fair Value, with the stock showing remarkable momentum, up 35% over the past six months.
The research firm adjusted its August quarter forecast and increased its November quarter EPS estimate from $2.90 to $3.13 based on its market checks, which it described as "cautiously optimistic." This optimism appears well-founded, as InvestingPro analysis shows Micron maintaining strong financial health with a GREAT overall score, while 10 analysts have recently revised their earnings estimates upward.
TD Cowen noted that while near-term questions may arise about the durability of Micron’s positive momentum, it expects the stock to continue performing well as part of the broader artificial intelligence investment trend.
The firm’s $150 price target values Micron at 12 times calendar 2026 EPS, compared to the current trading multiple of 9-10 times 2026 consensus estimates.
TD Cowen identified the high-bandwidth memory (HBM) revenue opportunity in calendar 2026 as a potential catalyst that could lead to a higher valuation multiple for Micron shares.
In other recent news, Micron Technology has announced an increase in its financial guidance for the upcoming fiscal fourth quarter. The company now anticipates revenue of approximately $11.2 billion, a notable rise from earlier estimates of $10.7 billion. This adjustment in outlook has been attributed to improved pricing, particularly in DRAM products, and better execution across various markets, including AI/datacenter, smartphones, and PCs. Micron has also raised its gross margin forecast to around 44.5% and expects earnings per share to reach $2.85, surpassing previous projections.
Several analyst firms have responded to these developments. JPMorgan has raised its price target for Micron to $185, maintaining an Overweight rating, while Cantor Fitzgerald and UBS have both reiterated their price targets of $155, citing the company’s improved outlook. Despite the raised outlook, BofA Securities has maintained a Neutral rating and a $140 price target, noting the broad-based strength in DRAM and NAND memory chips. Barclays (LON:BARC) has also reiterated an Overweight rating and a $140 price target, highlighting the memory pricing improvements. These recent developments reflect a positive shift in Micron’s financial performance and market positioning.
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