UBS Raises Micron Price Target to $1,625 on Long-Term DDR Supply Deals
MU•Micron Technology shares jumped 6.3% after UBS raised its price target to $1,625 from $535, citing three- to five-year supply agreements locking in up to 30% of DDR volumes. UBS lifted EPS forecasts to $155, $167 and $117 for calendar years 2027–2029 and projects over $400 billion in free cash flow through 2029.
1. Price Target Raise and Supply Agreements
UBS raised its Micron price target from $535 to $1,625, citing the adoption of three- to five-year DDR supply agreements that lock in up to 30% of industry volumes at near-current pricing. These contracts include fixed volume commitments and partially fixed pricing frameworks designed to enhance revenue visibility and smooth earnings volatility.
2. Enhanced EPS and Cash Flow Projections
UBS increased Micron's earnings-per-share forecasts to $155 for 2027, $167 for 2028 and $117 for 2029. The firm also projects more than $400 billion in free cash flow across the 2027–2029 period, with EPS remaining above $100 even under a moderate memory downcycle scenario.
3. Mizuho Reiterates Bullish AI Memory Thesis
Mizuho maintained its Outperform rating and $800 target on Micron, highlighting confidence in sustained DRAM and NAND demand driven by AI infrastructure build-out. The firm noted that the supply-demand imbalance could persist through 2027 as memory remains central to AI expansion.
