Rosenblatt cuts Micron stock price target to $200, keeps buy rating

Friday - Rosenblatt Securities analyst has revised the price target for Micron Technology (NASDAQ: NASDAQ:MU) shares to $200 from the previous $250, while still recommending a Buy. The adjustment follows Micron’s recent financial results, which surpassed expectations and indicated a positive outlook for the second half of 2025. According to InvestingPro data, Micron, currently valued at $114.76 billion, appears fairly valued based on its proprietary Fair Value model. The company maintains a "GOOD" overall financial health score, supported by strong liquidity metrics. The analyst pointed to the increased demand for High Bandwidth (NASDAQ:BAND) Memory (HBM) as a key driver for the company’s future growth, with DRAM bits expected to shift more towards this market in the calendar year 2026.

Micron’s recent earnings report showed a "beat and raise" performance, suggesting that market conditions are set to improve in the latter part of the year. The analyst emphasized the growing significance of DRAM, particularly in the context of the accelerating adoption of artificial intelligence technologies. InvestingPro data reveals impressive revenue growth of 79.8% in the last twelve months, with analysts forecasting continued sales growth this year. The company’s strong financial position is evidenced by a healthy current ratio of 2.72 and moderate debt levels. This shift is anticipated to absorb DRAM wafers that would otherwise serve the PC, Mobile, Internet of Things (IoT), and Automotive markets, potentially leading to higher average selling prices (ASPs) and improved gross margins for Micron.

Despite the positive outlook for DRAM, the analyst acknowledged that an oversupply of NAND Flash continues to pressure margins. Nevertheless, the expectation is that industry-wide supply reductions could help to balance, if not tip the supply-demand equation in favor of demand during the typically strong second half of the fiscal year.

Rosenblatt’s analysis underscores the strategic importance of DRAM in the "Age of AI" and suggests that Micron is well-positioned to benefit from this trend. The lowered price target reflects a more conservative valuation amidst current market conditions, yet the firm’s Buy rating indicates confidence in Micron’s long-term prospects. InvestingPro subscribers can access over 10 additional exclusive tips about Micron, including detailed insights into its profitability metrics and growth potential. The comprehensive Pro Research Report available on InvestingPro provides deep-dive analysis of Micron’s position in the semiconductor industry and its future prospects. The analyst’s comments highlight the potential for industry supply adjustments and seasonal strength to support Micron’s performance moving forward.

In other recent news, Micron Technology has reported strong financial performance, with earnings and revenue for the May quarter surpassing expectations. The company forecasted revenues of $8.80 billion and earnings per share (EPS) of $1.57, exceeding consensus estimates of $8.48 billion and $1.52 EPS. This positive outlook is attributed to strong demand in the Data Center sector, particularly for High Bandwidth Memory (HBM) and server DIMMs. Analysts from Cantor Fitzgerald, Mizuho (NYSE:MFG), Raymond (NSE:RYMD) James, Citi, and Stifel have all weighed in on Micron’s performance and prospects. Cantor Fitzgerald maintained an Overweight rating with a $130 price target, highlighting Micron’s better-than-expected guidance. Mizuho raised its price target to $124, emphasizing the company’s robust position in the HBM market. Raymond James and Citi both set a price target of $120, with Raymond James noting potential for market share gains in HBM and Citi anticipating a recovery in the DRAM market. Stifel reiterated a Buy rating with a $130 price target, citing resilience in NAND bit shipments and expected DRAM shipment growth. Overall, these developments reflect confidence in Micron’s strategic positioning and market dynamics.

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