Citi's Optimism for Micron's Stock Posting a Revenue Surplus, Forecasting a Potential Value of $150
Micron Technology (MU), a leading American semiconductor company, has seen its stock surge by 45.6% year-to-date, following a series of impressive financial results and positive analyst sentiment. The company's third-quarter fiscal 2025 earnings showed a total revenue increase of 36.6% year on year, reaching $9.3 billion. Adjusted net income for the quarter rose by 208% to $1.91 per share.
The optimistic outlook for MU stock is backed by a strong consensus among analysts, with most ratings classifying it as a "Strong Buy." Out of the 30 analysts covering MU, 22 rate it a "Strong Buy," four rate it a "Moderate Buy," three recommend a "Hold," and one says it is a "Strong Sell."
Analysts are particularly bullish about MU's long-term prospects, with the average 12-month price target ranging from about $125 to $153, representing an expected upside of approximately 18% to 28% from current price levels around $126. Some optimistic targets extend as high as $250, although there is variation among analysts.
Citi analyst Christopher Danely and DBS analyst Jim Hin Kwong Au are among those who have raised their price targets for MU. Danely increased his target to $150 from $130, while Au reiterated his "Buy" rating and price target of $149 for MU.
The upside potential of MU's stock is further highlighted by the Street-high estimate of $200, implying an upside potential of 64% over the next 12 months. Tom O'Malley of Barclays also raised MU's price target to $140 from $95 with a "Buy" rating.
Micron's strong earnings and institutional interest have fueled investor and analyst confidence. Institutional ownership is high (over 80%), indicating strong support from major investors who anticipate future growth in memory and semiconductor demand.
Analysts recognise Micron as well-positioned in the semiconductor industry, benefiting from ongoing demand for memory chips critical to data centers, AI, and mobile devices. This bodes well for its growth trajectory.
Micron's solid fiscal third quarter results were driven by strong high-bandwidth memory demand, favourable pricing, improved product mix, and strong demand, particularly for DRAM and HBM. The adjusted gross margin for the quarter increased to 39% from 28.1% in the prior year quarter.
Looking ahead, Micron expects revenue of $10.7 billion (plus or minus $300 million) for Q4 of fiscal 2025, representing a 39% increase from the fourth quarter of fiscal 2024. KeyBanc raised its price target for MU to $160 from $135 and reiterated its "Overweight" rating.
In conclusion, the general analyst consensus remains optimistic about Micron Technology (MU) stock, with a strong buy rating and significant upside potential driven by Micron's solid fundamentals, earnings performance, and strategic position in a growing semiconductor market. While some caution remains regarding short-term volatility, the medium to long-term outlook remains favourable.
Investors and analysts are highly bullish about the long-term prospects of Micron Technology (MU), with an average 12-month price target ranging from $125 to $250, indicating an expected upside of 18% to 112% from current price levels. This optimistic outlook is backed by strong financial results, a consensus of "Strong Buy" ratings from 22 out of 30 analysts, and high institutional ownership.
The upside potential of MU's stock is further highlighted by the Street-high estimate of $200, implying an upside potential of 64% over the next 12 months. Micron's strategic position in the semiconductor industry, benefiting from ongoing demand for memory chips critical to data centers, AI, and mobile devices, bodes well for its growth trajectory.
