Citi analyst Christopher Danely has reiterated their bullish stance on MU stock, giving a Buy rating yesterday.
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Christopher Danely has given his Buy rating due to a combination of factors tied to Micron’s positioning in a strengthening DRAM cycle. Management emphasized that capital spending and capacity additions are being kept at or below broader industry growth, which should help avoid oversupply and extend the current upturn in memory. Danely also highlights that equipment lead times and fabrication build-out constraints further limit near‑term capacity increases, reinforcing a supportive supply backdrop. On the demand side, Citi’s memory team now expects a much steeper rise in DRAM prices through 2026, driven by robust data center and AI-related requirements.
These favorable supply-demand dynamics translate into a sharply improved earnings outlook, with Danely’s fiscal 2026 EPS forecast for Micron running well ahead of market consensus and nearly tripling the company’s prior peak earnings. Micron is also guiding to gross margins that exceed their historical high by a wide margin, indicating strong profitability as pricing improves. Based on these fundamentals, Danely reiterates a Buy rating and a $330 price target, which assumes a valuation multiple in line with Micron’s long-term average. He believes that continued DRAM price appreciation and AI-driven demand should provide further upside to both estimates and the share price from current levels.
In another report released yesterday, Bernstein also assigned a Buy rating to the stock with a $330.00 price target.