Wells Fargo cuts Micron stock price target on valuation debate

Wells Fargo has adjusted its price target for Micron Technology (NASDAQ:MU) shares, reducing it from $1,525 to $1,400 while keeping an Overweight rating. The firm currently values Micron at $1,096, which it deems undervalued based on its Fair Value analysis. Wells Fargo has raised its revenue and earnings estimates for fiscal years 2027 and 2028.

For 2026, the company projects $132.3 billion in revenue and $75 in earnings per share (EPS); for 2027, it forecasts $261.3 billion in revenue and $166 in EPS; and for 2028, it anticipates $287.8 billion in revenue and $178 in EPS. These estimates are slightly higher than the current analyst consensus. Additionally, Wells Fargo estimates Micron's free cash flow will surpass $125 billion annually, with 100% shareholder returns commencing December 2026.

The reduced price target reflects ongoing debate over Micron's peak earnings potential and the value of its supply chain agreements. The firm expects continued favorable dynamics in DRAM and NAND supply-demand through 2027. Micron Technology has recently seen significant developments, including a Buy rating and a $1,500 price target from Stifel, citing expectations of exceeding consensus estimates due to supply agreements.

TD Cowen also maintained a Buy rating with a $1,600 price target, highlighting favorable demand conditions and noting Micron's mid-cycle demand growth. Citi projected a worsening undersupply in the memory market through 2031 due to increased AI demand, suggesting a persistent need for memory. Micron Technology has also won a patent appeal case against Netlist Inc., with the court dismissing Netlist's arguments. These developments highlight the dynamic environment in which Micron is operating.