DA Davidson raised its Micron (NASDAQ: MU) stock price target from $2,100 to a Street-high $3,000, maintaining a “Buy” rating on October 7.
The new price target implies a roughly 42% increase potential from the firm’s last forecast of $2,100 given less than a week ago.
According to analyst Gil Luria, the latest target follows Micron’s strong fiscal fourth-quarter results and above-consensus fiscal 2027 guidance, as well as management’s indication that memory markets could remain even tighter in 2028.
As such, DA Davidson’s valuation framework applies a 19x market multiple to its fiscal 2027 earnings-per-share estimate (EPS), reflecting the expectation that Micron deserves a premium valuation as its growth profile becomes more evident.
This represents a notable shift from D.A. Davidson’s earlier $2,100 Micron stock price target, which was based on a 13x multiple to forward earnings.
“We concluded that investors are early in their journey of understanding MU’s value and believe that journey will lead them to assigning a far higher multiple. We reiterate the Buy rating and increase our price target to $3,000 from $2,100, a 19x market multiple on our FY27 EPS estimate,” Luria wrote.
Investors will become more confident in Micron, analyst says
At the core of D.A. Davidson’s thesis is the claim that investors are still early in understanding Micron’s value. In other words, as the market gains greater confidence in the company’s earnings power, artificial intelligence (AI) demand, and longer-lasting memory supply constraints, investors will assign Micron a significantly higher valuation multiple.
Micron’s recent results provide support for the argument. Notably, the company reported $54.23 billion in fiscal fourth-quarter revenue, up 379% year-over-year (YoY), while adjusted EPS surged 1,003% to $33.42. Furthermore, for fiscal Q1 2027, Micron guided to $61.5 billion in revenue and $38.15 in adjusted EPS, highlighting the continued strength of AI-related memory demand.
The latest DA Davidson forecast is significantly more bullish than Wall Street’s average MU share price forecast for the next 12 months, which sits at $1,630 according to TipRanks data.
As for the “Buy” recommendation, it is in line with the majority of analysts who have rated the company in the past three months, as the same data shows that the stock currently enjoys a “Strong Buy” consensus.
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