UBS believes that biased supply-demand dynamics in the memory space will further boost shares of Micron from here. In a Wednesday note to clients, the bank reiterated its buy rating on the semiconductor manufacturer. Analyst Timothy Arcuri also lifted his 12-month price target to $295 from $275 implying a gain of 12%. Arcuri highlighted that supply remains tight, causing prices in different memory types to rise. He noted that this “meaningful undersupply” in DRAM and NAND memory, which should respectively last until the first quarter of 2027 and the fourth quarter of 2026, could result in customers securing volumes and contract pricing earlier in the quarter than they have in the past. MU YTD mountain MU YTD chart “We flag an even stronger pricing environment in both core DRAM and NAND than we had previously assumed,” he wrote. “Against this backdrop of tightening supply, we walk EPS estimates higher yet again and see EPS of ~$38 out in C2027E, justifying a PT of $295 (up from $275).” Arcuri left his revenue and earnings expectations for Micron’s fiscal first quarter unchanged at $13.2 billion and $4.27 per share, respectively. He wrote that these estimates were “well ahead of the company’s guidance and practically all driven by better pricing.” The company’s fiscal first-quarter report is due Wednesday after the bell. Shares of Micron have surged 213% this year. Most analysts are bullish on Micron shares. LSEG data shows that 40 of 46 analysts covering the stock rate it a buy or strong buy.
