Analysts continued to raise their targets on Micron stock over the weekend after the memory chip giant’s blowout earnings report.
- Susquehanna hiked its price target on MU to $2,000, the highest on Wall Street.
- Analysts highlight that Micron’s long-term customer agreements have significantly improved revenue visibility.
- MU stock has increased nearly four times since the start of the year.
Micron Technology, Inc.’s shares rose 0.8% in overnight trading late Sunday as analysts continued to review their price targets on the stock, sharply higher following the memory giant’s blowout report earlier in the week.
Susquehanna raised its price target on MU to $2,000 from $1,750, the highest on Wall Street, citing strong results, an upbeat forecast, and long-term customer agreements that significantly improve revenue visibility.
Micron reported record numbers for its fiscal third quarter – revenue rose 346% year over year, and gross margin more than doubled to 84.9% – and indicated that rapid growth will be sustained over the next few years.
Shares of peers SanDisk, Western Digital and Seagate Technologies were also trading higher in the overnight session.
Micron announced 16 contracts, strategic customer agreements (SCAs) — non-cancellable contracts that typically run for five years — which analysts see as a structural shift in how the company generates earnings.
Crucially, the agreements include minimum-pricing provisions that are expected to keep gross margins above previous-cycle highs, even during an industry downturn. Susquehanna now forecasts Micron will generate more than $110 billion in free cash flow in fiscal 2027, with most of it likely to be returned to shareholders.
Analysts Pile On PT Hikes
Over the weekend, Phillip Securities also raised its price target on MU to $1,870 from $530, adding that it believes Micron would secure more agreements with existing and new customers over the coming quarters. The latest upgrades follow those from JPMorgan, Morgan Stanley, Goldman Sachs, and several others.
Currently, 38 of 43 analysts rate the stock ‘Buy’ or higher, 4 rate it ‘Hold,’ and 1 rates it ‘Strong Sell,’ per Koyfin. Their average price target of $1,397.95 implies a 23% upside from the stock’s Friday closing price.
Micron stock rose nearly 16% on Thursday, driven by the results, but pulled back nearly 7% the next day amid a market-wide selloff in chip stocks. Year to date, shares are up nearly four times.
Retail View On MU
On Stocktwits, retail sentiment for MU was ‘extremely bullish,’ unchanged since the company reported its results last Wednesday, while message volume for the ticker rose 50% over the past week.
Over 70% of the about 2,400 users who voted in an ongoing Stocktwits poll chose Micron as the memory stock they would bet on for the next 12 months. “$MU I like DRAM and Micron the most. Sure wish I liked SNDK more from the get though when I bought Micron at $265. They have all been a blessing,” a user said.
About two dozen users posted on the MU stream, forecasting aggressive price targets in the $1,200 and $1,300 range ahead of Monday's open. They said Micron now earns more than Tesla, and the market capitalization hasn't caught up, and cited $1,172 as a key technical breakout level for the MU stock.
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