TD Cowen Turns More Bullish on Micron (MU) as Book Value Growth Accelerates

Micron Technology, Inc. (NASDAQ:MU) is one of the AI Stocks Making Moves on Wall Street. On November 19, TD Cowen raised its price target on the stock to $275.00 from $200.00 while maintaining a “Buy” rating.

The firm believes that Micron’s book value growth is strong through early 2027 and that risk is limited despite concerns about valuations and demand pull-in.

This book value per share growth is likely to accelerate through the first calendar quarter of 2027 driven by strong pricing in the memory chip market. However, there are some investor concerns.

“The main pushback against being long Micron here is that this is a commodity business, valuation is at the high-end of its historical range, it’s a matter of time until customers start pre-ordering and pulling in demand, and CY26 bull-case EPS of $25–30 looks like peak earnings (> 2x prior record in 2018).”

TD Cowen noted how historically, the stock has never peaked more than six months before book value growth year-over-year peaks. This suggests further upside potential for the shares.

Due to strong pricing, BVPS growth will likely keep rising, the firm noted. This momentum may break in case big companies start pushing back on prices and cutting orders, similar to how they did in mid-2021. However, the firm doesn’t see that happening anytime soon.

“Our view is that MU stock has never peaked more than 6 months before Book Value growth Y/Y peaks. With strong pricing, we expect BVPS growth to accelerate from here through CQ1’27, more than 12 months out. The one thing that can break this momentum is hyperscalers pushing back on pricing & reducing volume purchases – similar to CQ2’21 dynamics. We do not see that happening anytime soon.”

Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.

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