Can Micron (MU) Sustain Momentum? Analysts Point to Pricing Tailwinds

Core Viewpoint - Deutsche Bank has a positive outlook on Micron Technology, raising its price target from $300 to $500 per share, citing favorable supply and demand dynamics in the memory market [1][2]. Group 1: Financial Projections - Deutsche Bank increased its earnings per share estimate for Micron for the calendar year 2026 to $46.50, with a price target set at approximately 11 times that figure, reflecting tight supply/demand dynamics and improved pricing [2]. - The target multiple is above Micron's 5-year median NTM P/E of around 10x, indicating confidence in the company's position as a leading memory vendor amid unprecedented market conditions [2]. Group 2: Market Dynamics - The firm is optimistic about Micron's potential to benefit from growth in High Bandwidth Memory (HBM) and improved memory market conditions, which are expected to drive strong revenue and earnings per share growth [3]. - The current market environment is viewed as favorable for Micron in the upcoming quarters, suggesting a positive trajectory for the company [2]. Group 3: Risks and Challenges - Potential risks include increased supply from competitors, deterioration in memory pricing, changes in memory content per application, and advancements by Chinese competitors [3].