Melius Assigns $700 Price Target to Micron, Forecasts 35% Gain
On April 27 Melius Research initiated coverage on Micron with a two-year price target of $700 per share implying a 35% upside and raised its rating to buy forecasting a 41% gain over the next year. The firm cited a robust subscription-style memory demand outlook expected to persist through 2030.
1. Melius Research Initiates Coverage on Micron
On April 27 Melius Research began coverage with a two-year price target of $700 per share, implying a 35% increase from current levels. The initiation reflects confidence in Micron's valuation at discounted multiples relative to long-term growth prospects.
2. Buy Rating and One-Year Upside Forecast
The firm also raised its rating on Micron to buy, projecting a 41% gain over the next year. Analysts cited improving profitability metrics and expanding margins as key drivers of the near-term performance outlook.
3. Subscription-Style Memory Demand Outlook
Melius highlighted a shift toward software-like subscription models for memory storage, which could generate more predictable recurring revenues. This recurring demand trajectory is expected to sustain strong memory sales through 2030.
4. Structural Drivers of Long-Term Demand
Analysts emphasized robust long-term memory demand driven by AI, cloud computing, and data center expansions. This structural trend underpins the positive forecasts and supports capacity investments by Micron.