Citigroup Cuts Micron Price Target But Keeps Buy Rating

Citigroup analyst Atif Malik recently reduced his 12 month target for Micron Technology from $1,400 to $1,150. Despite this 18% cut, the firm maintained its Buy rating on the stock. The move reflects an expectation that the current surge in memory pricing will likely slow down over the coming quarters as market conditions stabilize.

The adjustment is largely based on a change in the price to earnings multiple, which Citi shifted from 10x to 8x based on 2027 estimates. Analysts point to mixed earnings from industry peers and a cooling of gross margins as reasons for the more cautious valuation. Citigroup expects DRAM and NAND prices to peak by the second quarter of next year.

Long term concerns remain regarding increasing production capacity from Chinese competitors like YMTC and CXMT. Although Micron has managed to sell out much of its high bandwidth memory capacity through 2027, the potential for increased global supply remains a factor that could influence future pricing power.

Despite the reduced target, Wall Street sentiment remains generally favorable toward the company. With record revenue of $41.46 billion and strong earnings performance, investors are balancing short term pricing risks against the sustained demand driven by artificial intelligence. Traders should monitor future memory price trends to see if the market growth matches these updated projections.