Morgan Stanley raises Kioxia stock price target to JPY3,900 on SSD demand

Published 11/09/2025, 10:48
Morgan Stanley raises Kioxia stock price target to JPY3,900 on SSD demand

Investing.com - Morgan Stanley has raised its price target on KIOXIA Holdings (285A:JP) from JPY2,900.00 to JPY3,900.00 while maintaining an Overweight rating on the stock.

The price target increase reflects expanding eSSD demand and improving supply-demand dynamics in the overall market, prompting Morgan Stanley to raise its GB shipment growth and GB average selling price (ASP) assumptions for fiscal years 2026 and 2027.

While Morgan Stanley’s fiscal 2027 sales forecast aligns with consensus estimates, its operating profit forecast stands approximately 20% above market expectations.

The investment bank notes that GB cost reduction in fiscal 2026 will be modest, but expects contributions from the transition to BiCS-8 technology in fiscal 2027 to enable a mid-10% annual reduction, consistent with KIOXIA’s long-term financial model targets.

Morgan Stanley anticipates this cost reduction, coupled with a gradual decline in ASP, will drive margin improvement for the memory chip manufacturer.

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