UBS raised the firm’s price target on Micron (MU) to $275 from $245 and keeps a Buy rating on the shares. The firm’s recent channel checks indicate “tight” supply conditions persist. Despite the lack of a positive preannouncement, Micron is likely tracking above the high end of its guidance with double data rate 5 contract negotiations now edging towards up 20% quarter-over-quarter or higher, the analyst tells investors in a research note. UBS believes Micron’s cycle will be more durable this time as high-bandwidth memory “crowds out” the traditional memory market. Most, if not all, of the capacity addition across the industry through 2027 will likely go to HBM, the firm contends.
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