Key TakeawaysShares of Micron declined approximately 2% Thursday morning to $1,046.37 during premarket hours, despite surging nearly 600% in the past year.Timothy Arcuri from UBS maintained his Buy recommendation and increased his price target to $1,625, pointing to expanding supply-demand imbalances in memory markets.Atif Malik at Citi maintained his Buy stance and boosted his target from $1,150 to $1,300, driven by robust DRAM pricing trends.Share repurchase limitations connected to Micron’s Chips Act award from 2024 are scheduled to end on Dec. 9.The company will announce fiscal fourth-quarter results on Sept. 30, with investors looking for evidence of sustained pricing momentum.Micron Technology shares declined roughly 2% Thursday, hovering around $1,046 during early trading. This modest retreat follows an extraordinary rally that has propelled the stock nearly 600% higher over the trailing twelve months.Micron Technology, Inc., MUDespite the Thursday pullback, two prominent Wall Street firms remain bullish. Timothy Arcuri from UBS and Atif Malik from Citi both maintained Buy recommendations this week, highlighting an increasingly constrained memory semiconductor market.Arcuri’s valuation methodology caught attention. His $1,625 price objective applies an eight-times forward price-to-earnings multiple to his 2029 earnings projections for the memory chip manufacturer.The Bull Case for Higher PricesThe investment thesis centers on fundamental supply-demand dynamics. Artificial intelligence servers require massive memory capacity, and semiconductor producers struggle to match demand.Arcuri indicated that his recent industry discussions reveal an expanding mismatch between customer requirements and available supply. He projects Micron will deliver fiscal fourth-quarter revenue of $52.4 billion when it reports on Sept. 30, alongside earnings per share of $32.50.Malik’s projections align closely with those figures. He anticipates $51 billion in fourth-quarter revenue and EPS of $31.45, both slightly exceeding consensus Wall Street estimates.For the longer horizon, Malik forecasts fiscal first-quarter 2027 revenue reaching $57 billion, with earnings per share advancing to $35.25.Pricing momentum supports the bullish outlook. Citi now anticipates blended DRAM prices will increase 20% sequentially in the fiscal fourth quarter, followed by an additional 13% gain in the subsequent quarter.Malik believes both DRAM and NAND markets will remain supply-constrained in the near term, although he anticipates price increases will moderate across the next four quarters. His analysis suggests pricing will peak around the second quarter of 2027.Share Repurchase Program on the HorizonAn overlooked factor could provide additional support. Micron currently faces restrictions on large-scale share buybacks and special dividend payments due to conditions linked to its 2024 Chips Act government funding.These limitations sunset on Dec. 9. Arcuri anticipates Micron could initiate buybacks around $20 billion quarterly, potentially scaling toward $50 billion per quarter by fiscal 2027’s conclusion.This blend of pricing strength and capital returns underpins Arcuri’s confidence even in bear-case scenarios. He contends that even if spot memory prices plunged 80% when the current AI-fueled cycle concludes, which he forecasts for late 2028, Micron would still generate higher annualized earnings than current levels.Long-duration supply agreements and the anticipated buyback initiative form the foundation of that projection.Citi is monitoring Micron’s capital allocation strategy carefully. The firm projects Micron will allocate approximately $50 billion to capital expenditures in fiscal 2027, with over $20 billion directed toward equipment purchases.Micron’s market capitalization has surpassed $1 trillion following this year’s remarkable performance. The upcoming fiscal fourth-quarter earnings announcement on Sept. 30 represents a crucial test that will reveal whether pricing strength translates into the financial results analysts anticipate.The post Micron (MU) Stock: Analysts Boost Price Targets Despite Thursday Dip appeared first on Blockonomi.