Key Takeaways Vijay Rakesh of Mizuho continues his Outperform stance on MU, targeting $1,375—representing approximately 60% growth potential from present pricing Shares have declined 12% in t
Shares of Micron Technology (MU) are currently changing hands around $857, representing approximately a 12% decline over the past 30-day period and substantially below the late June high that exceeded $1,200. The recent downturn stems from market anxiety regarding the semiconductor manufacturer’s ability to sustain its current elevated profit margins.
However, Vijay Rakesh from Mizuho, who holds a 5-star analyst rating, remains unconvinced by the bearish sentiment. Following discussions with Micron leadership, he reaffirmed his Outperform recommendation while maintaining his $1,375 price objective. This forecast suggests roughly 60% appreciation potential from today’s trading levels.
His investment thesis centers on one fundamental premise: constrained memory availability persists. In his analysis, Rakesh stated that “we believe Micron sees DRAM/NAND market tight well through 2027E,” a dynamic anticipated to sustain robust pricing and healthy margin profiles.
Additionally, he highlighted Micron’s forward price-earnings multiple trading beneath six as evidence of attractive valuation relative to earnings capacity. Extended-term supply contracts are projected to secure pricing advantages on upcoming memory offerings, maintaining gross margins north of 80%.
A significant headwind for MU recently has been the emergence of Chinese memory producer ChangXin Memory Technologies (CXMT). News that Apple sought regulatory approval to purchase CXMT components to address worldwide shortages intensified investor concerns.
Rakesh challenged this storyline. He indicated that any meaningful incremental production from CXMT is “only coming in 2028E and still no meaningful change to supply-demand imbalance.” He further emphasized that CXMT concentrates mainly on serving Chinese domestic requirements and currently lacks manufacturing infrastructure to deliver cutting-edge memory solutions at volume.
On the institutional investment front, Handelsbanken Fonder expanded its Micron position by 6.3% during Q2, acquiring 37,420 additional shares to bring total holdings to 630,685 units, valued at approximately $728 million. Institutional shareholders now control 80.84% of outstanding shares.
Micron’s latest quarterly disclosure provided substantial evidence supporting the bullish case. The company delivered $25.11 in earnings per share, surpassing the $21.39 consensus forecast by $3.72. Revenue registered at $41.46 billion, comfortably exceeding the $35.91 billion projection and climbing 345.8% compared to the prior year.
Management issued Q4 2026 EPS guidance ranging from $30 to $32. The analyst community collectively forecasts $72.93 in full fiscal year earnings per share.
Regarding analyst coverage, Bank of America elevated its price target to $1,500 with a Buy rating. Cantor Fitzgerald similarly maintains a $1,500 objective alongside an Overweight designation. Goldman Sachs adjusted its target upward from $900 to $1,100 while retaining a Neutral stance.
The overall Wall Street consensus registers as Buy, featuring an average 12-month price target of $1,569.07, implying potential appreciation exceeding 84% from current valuations.
One development meriting attention: company insiders have divested 162,179 shares valued at approximately $167.8 million during the past quarter, including CEO Sanjay Mehrotra’s disposition of 31,285 units at an average price of $926.83 on July 24th.
High-bandwidth memory supply also remains constrained. UBS observed that Nvidia may have scaled back planned HBM4E integration in its forthcoming VR300 GPU owing to availability limitations, a situation that could further reinforce Micron’s pricing leverage.
The post Micron (MU) Stock: Analyst Projects 60% Rally as Memory Market Remains Constrained Until 2027 appeared first on Blockonomi.
