Citi Cuts Micron Target to $1,150 as Memory Prices Seen Peaking in 2Q27
Updated
Updated · Yahoo Finance · Aug 7
Citi Cuts Micron Target to $1,150 as Memory Prices Seen Peaking in 2Q27
1 articles · Updated · Yahoo Finance · Aug 7
Summary
Citi lowered its Micron price target to $1,150 from $1,400 while keeping a Buy rating, after trimming its 2027 valuation multiple to 8x from 10x.
The bank said DRAM and NAND pricing momentum is still positive but should decelerate over the next four quarters, with both markets now expected to peak in 2Q 2027.
For 2H27, Citi now forecasts DRAM prices down 3% half over half and NAND down 5%, and cut Micron FY27 and FY28 EPS estimates by 1% and 2%.
Micron's gross margin is seen easing from the current mid-80s to the mid-70s next year; long-term contracts covering about 40% of DRAM bits should soften, but not offset, weaker pricing.
Citi said the bigger long-term risk is China, with YMTC planning to add 50,000 to 60,000 wafer starts to its 200,000-capacity NAND base next year.