From 24/7 Wall St. · Vandita Jadeja · · 1m
Citi Raises Micron Target to $1,300
Citi boosts Micron stock target to $1,300 amid stronger DRAM pricing and supply tightness.
In brief
Citi boosts Micron stock target to $1,300 amid stronger DRAM pricing and supply tightness. Citi raised Micron's price target to $1,300 due to better-than-expected DRAM pricing and continued supply shortages. Originally reported by 24/7 Wall St..
Citi Adjusts Micron Target
Citi raised its Micron price target to $1,300 from $1,150 while maintaining a buy rating.
“Citi analyst Atif Malik raised his August and November quarter estimates on the back of stronger DRAM pricing than he had modeled.”
Stronger DRAM Pricing
DRAM pricing has strengthened, with fiscal Q3 revenue up 345.7% year over year.
“Fiscal Q3 DRAM prices increased in the low 60s percentage range, while NAND prices rose in the mid-80s percentage range.”
Supply Tightness Continues
Micron expects tight conditions to persist beyond calendar 2027 due to undersupply.
“DRAM and NAND industry demand continues to significantly exceed industry supply”
Fiscal Q4 Guidance
Micron forecasts fiscal Q4 revenue of $50 billion plus or minus $1 billion and EPS of $31 plus or minus $1.
“Micron has also signed 16 Strategic Customer Agreements, typically five-year take-or-pay agreements running through calendar 2030.”
Street Target Comparison
Citi’s $1,300 target sits below the Street average of $1,515, suggesting room for further upward revisions.
“Consensus fiscal 2027 EPS has climbed to $156.53, up from $117.86 ninety days ago.”
Contract-Driven Growth
Micron’s 16 Strategic Customer Agreements could generate $100 billion in cumulative revenue once fully executed.
“For 14 of the 16 signed agreements, cumulative revenue at the minimum price is approximately $100 billion”
What Happens Next
Micron stock may continue rising as DRAM pricing power and undersupply drive further gains.
“The combination of undersupply, take-or-pay contracts, and rising consensus estimates warrants a closer look.”
The essence
Citi raised Micron's price target to $1,300 due to better-than-expected DRAM pricing and continued supply shortages.
