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."

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $225.52 yesterday.

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