UBS raises their $MU PT to $535 (from $510)

We raise our price target from $510 to $535 based on the same SOTP valuation method. We derive ~$405 of value for MU’s Core DRAM+NAND ex-HBM business applying an unchanged ~3x P/S multiple in line with the 3-yr average prior to C2024, when MU had no HBM contributions on C27E revenue of $187.7B. Similarly, we derive ~$132 of value for MU’s HBM business by applying a ~6x P/S multiple unchanged on C27E revenue of $27.9B.