Citi analyst Atif Malik cut Micron Technology's price target 18% to $1,150 from $1,400 whilst maintaining a Buy rating, warning that DRAM and NAND pricing cycles may be nearing their peak. The firm reduced fiscal 2027 and 2028 earnings estimates by 1% and 2% respectively, expecting gross margins to retreat from the mid-80% range toward the mid-70% range next year as pricing power moderates. Micron posted fiscal third-quarter revenue of $41.46 billion, up from $9.30 billion a year earlier. Management expects fourth-quarter revenue near $50 billion. Malik cited Chinese competition and capacity additions in NAND and DRAM markets as the biggest risk. However, roughly 40% of Micron's DRAM bits are covered by long-term pricing agreements, providing some protection.

Micron Technology shares slipped 0.6% on Friday after Citi cut its price target to $1,150 from $1,400 whilst maintaining a Buy rating. The downgrade reflects expectations that DRAM and NAND pricing gains will moderate over the next four quarters. Despite the target cut, Micron reported record revenue of $41.46 billion, up from $23.86 billion in the previous quarter. The company forecasts fiscal fourth-quarter revenue of $50 billion, plus or minus $1 billion, with gross margins around 86%. However, valuation concerns are emerging. Micron trades near $874, roughly 55% above its estimated intrinsic value of $564. The company plans $27 billion in capital investment for fiscal 2026 as it expands AI customer relationships.

Micron Technology, BrightSpring Health Services, and Custom Truck One Source have emerged as standout profitable stocks based on strong net income ratios and growth prospects. The selection criteria included a Zacks Rank of #1, trailing 12-month sales and net income growth exceeding industry averages, and a net income ratio higher than the industry standard. Micron Technology, a global memory and storage provider, shows particularly impressive metrics with a 12-month net profit margin of 55.9%. The company's expected earnings growth rate for the current year stands at 791%. The screening process, using the Zacks Research Wizard, filtered more than 7,685 stocks down to just 13 that met all criteria. The net income ratio helps investors assess a company's ability to cover both operating and non-operating expenses with revenues.