Micron Technology, Inc.'s shares rose 0.8% in overnight trading late Sunday as analysts raised price targets following the memory giant's report earlier in the week. Susquehanna increased its price target to $2,000 from $1,750, the highest on Wall Street, citing strong results and long-term customer agreements. The upgrades follow Micron's record fiscal third-quarter performance, with revenue rising 346% year over year and gross margin reaching 84.9%.
Susquehanna Sets $2,000 Price Target on Micron Stock
Susquehanna raised its price target on MU to $2,000 from $1,750, the highest on Wall Street. The firm cited strong results, an upbeat forecast, and long-term customer agreements that significantly improve revenue visibility. Susquehanna forecasts Micron will generate more than $110 billion in free cash flow in fiscal 2027, with most of it likely to be returned to shareholders.
Micron Reports Record Fiscal Q3 Results and Strategic Agreements
Micron reported record numbers for its fiscal third quarter. Revenue rose 346% year over year, and gross margin more than doubled to 84.9%. The company indicated that rapid growth will be sustained over the next few years.
Micron announced 16 strategic customer agreements (SCAs)—non-cancellable contracts that typically run for five years. Analysts see these agreements as a structural shift in how the company generates earnings. The agreements include minimum-pricing provisions that are expected to keep gross margins above previous-cycle highs, even during an industry downturn.
Shares of peers SanDisk, Western Digital and Seagate Technologies were also trading higher in the overnight session.
Phillip Securities and Other Analysts Raise Price Targets
Over the weekend, Phillip Securities raised its price target on MU to $1,870 from $530. The firm stated it believes Micron would secure more agreements with existing and new customers over the coming quarters. The latest upgrades follow those from JPMorgan, Morgan Stanley, Goldman Sachs, and several others.
Currently, 38 of 43 analysts rate the stock 'Buy' or higher, 4 rate it 'Hold,' and 1 rates it 'Strong Sell,' per Koyfin. Their average price target of $1,397.95 implies a 23% upside from the stock's Friday closing price.
Micron stock rose nearly 16% on Thursday, driven by the results, but pulled back nearly 7% the next day amid a market-wide selloff in chip stocks. Year to date, shares are up nearly four times.
Retail Sentiment Remains Extremely Bullish on Micron
On Stocktwits, retail sentiment for MU was 'extremely bullish,' unchanged since the company reported its results last Wednesday. Message volume for the ticker rose 50% over the past week.
Over 70% of the about 2,400 users who voted in an ongoing Stocktwits poll chose Micron as the memory stock they would bet on for the next 12 months. One user stated, "$MU I like DRAM and Micron the most. Sure wish I liked SNDK more from the get though when I bought Micron at $265. They have all been a blessing."
About two dozen users posted on the MU stream, forecasting aggressive price targets in the $1,200 and $1,300 range ahead of Monday's open. They said Micron now earns more than Tesla, and the market capitalization hasn't caught up, and cited $1,172 as a key technical breakout level for the MU stock.
FAQ
What did Susquehanna do with its Micron price target?
Susquehanna raised its price target on MU to $2,000 from $1,750, the highest on Wall Street, citing strong results, an upbeat forecast, and long-term customer agreements.
How did Micron perform in its fiscal third quarter?
Micron reported record fiscal third-quarter results with revenue rising 346% year over year and gross margin more than doubling to 84.9%. The company announced 16 strategic customer agreements that typically run for five years.
