10:45 AM EDT, 03/19/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target at $500, on P/E of 5.7x our CY 27 EPS view of about $88, towards the low end of its 10-year historical range. We raise our FY 26 EPS to $57.69 from $36.04 and FY 27 to $89.95 from $50.17. Although MU posted phenomenal Feb-Q results, our concerns are around the trajectory of gross margins (81% guide for May-Q near/at peak but could be sustained for several quarters) and whether MU could hike capex spend well above expectations in FY 27 and beyond amid unprecedented supply constraints (only able to meet about 50% of demand). Still, we expect pricing to remain resilient well into CY 27, fueled by higher AI capex spend and the wafer capacity needs for HBM. We believe that strategic customer agreements offer better revenue visibility and next-gen NVIDIA servers offer considerable content growth. Pricing increases are likely to moderate, especially as they create some demand destruction in cyclical markets, with our assumptions assuming multiple expansion remaining near historical lows.