Wedbush joins the bullish ranks: Micron (MU.US) price target was raised to $300 before the results

The Zhitong Finance App learned that Micron Technology (MU.US) plans to announce its first fiscal quarter results after the US stock market on December 17. The market generally expected adjusted earnings per share of $3.83. Revenue is expected to be $12.72 billion. The company's stock price has risen 176% so far this year; against this backdrop, Wedbush Securities has reaffirmed its “overbearing” rating and raised its price target from $220 to $300.

Wedbush analyst Matt Bryson wrote in a note to clients: “We raised our expectations for this quarter to slightly above the upper limit of Micron's initial predictions, but we wouldn't be surprised if our revised model remains too conservative. Micron's fiscal second quarter will benefit from a sharp rise in memory prices — we believe DRAM prices will eventually rise by at least 30% in the first fiscal quarter, and we expect NAND prices to rise at least 20% (although the exact increase each manufacturer achieves in any given quarter depends in part on the product portfolio and the status of their specific contracts). Therefore, if Micron's NAND and DRAM prices do rise by only one or two digits (in line with our model), we expect a more significant increase in the second fiscal quarter (in line with our price expectations for the industry as a whole).”

This year, Micron has become a leader in storage stocks, partly due to its position in the DRAM and HBM chip markets, which are currently expensive and in high demand. The memory bottleneck has been identified as a growing problem facing high-end AI server vendors, including Dell (DELL.US). Dell said during its third-quarter earnings call that rising memory prices are increasing its costs and that memory shortages are posing challenges. Dell Vice Chairman Jeffrey Clark said, “We are in a very unique time. This is unprecedented. We've never seen costs rise so fast. And it's not just DRAM, it's also NAND.”

Zhitong Finance previously reported that a number of Wall Street investment banks have also reiterated their positive views on Micron Technology.

Last week, Deutsche Bank analysts reaffirmed its “buy” rating and raised the price target from $200 to $280. Deutsche Bank raised Micron's earnings per share forecast for fiscal year 2026 by nearly 26%. The Idaho-based company is currently expected to report full-year earnings of $20.63 per share, compared to the previous forecast of $16.41. The bank also raised its full-year revenue forecast by 12%, from $53.2 billion to $59.66 billion.

HSBC first gave Micron Technology a “buy” rating and set a target price of $330. HSBC analyst Ricky Seo wrote in a report to clients: “Micron Technology's stock price has risen 172% so far this year, outperforming the NASDAQ index (up 22%), but recently the stock price has declined somewhat because the market seems to be overly concerned about financial risks from new cloud service providers and the 'Star Gate' project; we believe that cloud service providers that invest with their own EBITDA will maintain strong capital expenditure implementation efforts. We think now is a good time to accumulate this stock.”

Goldman Sachs analysts also gave a basically bullish outlook, predicting that its performance would be higher than Wall Street's general expectations. Meanwhile, Morgan Stanley also expressed a bullish argument in a research report.