Citigroup Raises Micron Target to $840, Flags 5.14% 30-Year Yield Risk
Citigroup raised its Micron price target to $840 from $425, maintaining a Buy rating based on anticipated DRAM price hikes fueled by AI and data-center demand. Its rates strategists caution clients over 30-year Treasury yields near 5.14%, warning they could breach 5.5% and advising reduced long-duration bond exposure.
1. Equity Research Upgrade on Micron
Citigroup boosted its Micron price target to $840 from $425, maintaining a Buy rating on expectations of recovering DRAM prices driven by AI and data-center demand. This upgrade underscores Citigroup's research strength and may boost trading and advisory fees as client interest in memory stocks rises.
2. Rates Strategists Flag Treasury Yield Risks
Citigroup's macro rates strategists highlighted 30-year Treasury yields at 5.14%, cautioning clients that yields could test or breach 5.5% levels. They recommended reducing exposure to long-duration bonds in favor of equities, signaling cautious positioning ahead of potential Federal Reserve policy shifts and market volatility.