Micron Technology (MU) stock has rallied by an impressive 256% over the past year. However, KeyBanc and Bank of America see further upside potential in the memory and storage solutions provider’s stock. On Tuesday, KeyBanc analyst John Vinh increased the price target for Micron Technology stock to $450 from $325 and reiterated a Buy rating. Likewise, Bank of America analyst Vivek Arya raised his price target for MU stock to $400 from $300, while maintaining a Buy rating. Let’s look at the reasons for the bullish stance of these analysts.
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KeyBanc Analyst Is Bullish on Micron Stock
Vinh expects the current memory chip cycle to be “stronger for longer” this time compared to previous cycles, especially as greenfield manufacturing capacity is not expected to come online until mid-2027.
However, the 5-star analyst maintained his estimates for Micron, as they are already well above the Street’s projections. Notably, Vinh expects Micron to report Fiscal 2027 revenue and earnings per share (EPS) of $94.4 billion and $45.20, respectively, compared to the Street’s expectations of revenue of $89.6 billion and EPS of $40.88.
Bank of America Analyst Sees Further Upside in MU Stock
Bank of America’s Arya raised his price target, citing continued strength in dynamic random access memory (DRAM) pricing and a favorable supply backdrop. Arya noted that the memory market is experiencing robust demand and restricted expansion in the near term. The 5-star analyst contended that while SK Hynix and Micron intend to significantly increase capital spending in 2026, the industry’s physical footprint remains limited.
“Industry clean room space remains limited, with material equipment installation and volume production still likely 2-3 years away,” said Arya.
Given these constraints, Arya expects an extended upcycle for the memory market, mainly as high-bandwidth memory (HBM) and data center demand remain strong.
The analyst explained that while his revised price target of $400, based on 3.0x calendar year 2027 price-to-book multiple, is at the high-end of the historical 0.8x-3.1x range, it is justified due to the ongoing memory upcycle.
Is Micron a Good Stock to Buy?
Micron Stock scores Wall Street’s Strong Buy consensus rating based on 24 Buys and two Holds. The average MU stock price target of $345.12 indicates a modest upside of about 2% from current levels.
