Wells Fargo analyst Aaron Rakers reiterated a Buy rating on Micron (MU – Research Report) yesterday and set a price target of $170.00.
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Aaron Rakers has given his Buy rating due to a combination of factors including Micron’s strong performance and positive future outlook. The company reported a significant increase in High Bandwidth Memory (HBM) sales, with a 50% quarter-over-quarter rise, which equates to over $1.5 billion. This growth is supported by a robust data center market and tightening inventory levels, suggesting continued upside potential for Micron.
Additionally, Micron’s gross margin percentage is on an upward trend, with guidance indicating a potential path to over 50% gross margin in fiscal year 2026. This is driven by lean inventory and a favorable mix of high-value solutions. Furthermore, Micron’s increased price target to $170, up from $150, reflects anticipated strong execution and valuation based on future earnings projections. These factors collectively underpin Aaron Rakers’s confidence in Micron’s stock, leading to the Buy rating.
Rakers covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Intel, and Micron. According to TipRanks, Rakers has an average return of 22.7% and a 66.12% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $140.00 price target.