UBS analyst reaffirms $1,625 Micron target before earnings

Motley Fool

UBS analyst Timothy Arcuri reaffirmed his Buy rating and $1,625 price target for Micron ahead of its Sept. 30 fourth-quarter report. He says the stock could reach that level within a year if results stay strong and the memory market remains tight.

Arcuri bases his view on a widening gap between memory-chip supply and demand. The analyst consensus cited in the article calls for fourth-quarter revenue of $51.2 billion, up 352%, and adjusted EPS of $31.56, up from $3.03.

Arcuri also points to potential share buybacks. Restrictions tied to Micron’s CHIPS Act funding are due to expire Dec. 9; the article says Micron had repurchased $1.4 billion in shares through the first three quarters, while Arcuri suggested buybacks could reach $20 billion per quarter and rise to $50 billion a year later. He expects memory prices to start falling in the second half of 2028, but says profits could remain above current levels, citing buybacks and five-year pricing agreements.

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