Bank of America: Raises Micron Technology's target price to $1550, reiterates "Buy" rating.

Bank of America Securities released a report stating that Micron once again delivered strong quarterly performance, reinforcing the bank's constructive view on the role of memory in artificial intelligence and the increasingly disciplined support from the supply side for longer cycles. Although the strategic customer agreements have now reached 16, which may moderately limit short-term pricing upside, they have enhanced visibility and reduced volatility by remaining consistent with customers facing rising memory taxes. The valuation remains attractive, with the stock implying a free cash flow yield of about 10%, and the bank expects a significant increase in capital return after the December 2026 anniversary of the "Chip Act". The bank reiterated a "buy" rating on Micron, raised future annual earnings forecasts by 4% to 7%, increased the target price from $1500 to $1550 based on a sum-of-parts valuation method, valuing the core memory business at approximately 3 times book value and the data center/artificial intelligence business at 31 times earnings.