Micron Technology (MU) Reiterated at Buy by UBS as Investor Positioning Skews Cautious

UBS analyst Timothy Arcuri reiterated a Buy rating and $1,625.00 price target on Micron Technology (NASDAQ: MU).

The analyst commented, "Investor questions during our meetings were focused almost entirely on “downside” elements of the model - e.g., details around SCAs and why they will or will not hold up, downside to gross margin, sustainability of current supply tightness, and the amount of capacity set to come online over the next few years. This is consistent with investor positioning that we feel skews quite cautious and to us presents opportunity as MU’s earnings prove to be more durable than feared. MU will probably remain a “battleground” in the near-term; shorter-term investors will remain turned off by peaking gross margins as more volume moves inside of SCAs struck at pricing from 1-2Qs ago, but longer-term investors will see memory as capturing much more sustained value as the economics of AI token generation (e.g., revenue dollars) will be fundamentally more determined by memory than compute. Net, we remain bullish here and reiterate our $1,625 PT."

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $1011.75 yesterday.

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