Stifel Reiterates Micron (MU) Stock at Buy as Demand Outstrips Supply
Stifel analyst Brian Chin reiterated a Buy rating and $300.00 price target on Micron Technology (NASDAQ: MU).
The analyst commented, "Micron F1Q earnings handily exceeded our above consensus estimates with ASP strength driving DRAM and NAND revenue up 20%+ QQ.Margin expansion across all business units was pronounced, including consumer-oriented mobile/client (54% GMs, up from 36% the prior quarter).Demand is outstripping supply, with Micron only able to meet 1/2 to 2/3 of some key customers’ near-term demand.On the back of this, Micron guided for F2Q(Feb) revenue growth to accelerate to +37% QQ, mainly driven by pricing and mix, with GMs expanding to a record 68.0% (+11%-pts QQ).We would largely underwrite Micron’s commentary that into 2026 its/industry bit supply growth is physically constrained. Yet despite this, Micron targets +20% bit growth in DRAM and NAND in 2026, positive given a lack of new cleanroom space.Following another round of upward estimate revisions, Micron trades less than 6x our NTM EPS estimate; we reiterate our Buy-rating and $300 target price."
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Shares of Micron Technology closed at $225.52 yesterday.