Micron EPS Outlook Raised to $60 with $600 Target, HBM4 Shipments Soon
TD Cowen raised its long-term EPS outlook to $60 for 2026 from $50, citing persistent DRAM supply constraints and stronger pricing that should boost margins. The firm’s 12x multiple on $50 normalized EPS underpins a $600 stock target, and management expects HBM4 shipments this quarter as demand outstrips capacity.
1. TD Cowen Raises EPS Forecast
In February, TD Cowen raised its long-term EPS outlook for Micron to $60 for 2026, up from a previous $50 estimate, citing structural DRAM supply constraints and stronger pricing that should boost margins.
2. $600 Price Target Based on 12x Multiple
The firm applies a 12x multiple on a normalized $50 EPS base to derive a long-term $600 stock target, reflecting its expectation of sustained earnings growth and sector re-rating potential.
3. Management Advances HBM4 Shipments Timeline
Company leadership now anticipates HBM4 shipments will commence in the current quarter, advancing the timeline by a quarter and highlighting elevated demand that exceeds current supply capacity.
4. Recent Strong Stock Performance
Shares surged 240% in 2025 and have rallied 50% year-to-date, trading near record highs yet remaining about 6% below their 52-week peak of $455.50.