Micron (MU)
Baird raised its price target to $152 from $128 ahead of earnings and kept an overweight rating. That new target sits about 40% above Friday's close. The stock is up about 279% year-to-date, not counting today's move, and it is falling today along with the broader market as bond yields and oil prices rise.
Earnings come out today. Baird expects growing use of generative AI to lift demand for server processors and the memory chips that run alongside them. DRAM supply growth should slow in 2027, keeping the market short. That shortage gives pricing power, and the ongoing supply squeeze could support Micron's pricing. Baird also sees better profitability next year for high-bandwidth memory (HBM), the fast memory used in AI systems. For the earnings call, watch memory pricing, margins, and shipment volume, which Micron expects to ramp in 2027. Baird says rising generative-AI demand will push Micron shares to new record levels. EPS is expected around $3.15.
Micron helped push the Nasdaq to new highs. Some analysts think it could overtake Nvidia (NVDA) as the biggest driver of S&P 500 earnings growth.
Roblox (RBLX)
Jefferies downgraded Roblox to underperform from hold, and the stock is now down more than 8% today - roughly 18% to 20% below Friday's close. The shares have lagged all year. Jefferies keeps a $38 price target, which is below the current price.
The core worry is US daily user growth. Jefferies does not expect it to climb the way the market hopes. Viral games gave the platform a lift, but many of those players did not stick around. Ro-Ghoul has faded, Grow a Garden has dropped off, while Steal a Brain Rot and Rivals are still popular. Jefferies expects bookings to grow just 5% in fiscal 2027, against market hopes for double-digit growth.
Royal Caribbean (RCL)
Bank of America upgraded Royal Caribbean to buy from neutral and kept its $330 price target. The call is that the stock has fallen too far - down more than 26% recently, and about 25% year-over-year. It now trades at less than 10 times expected 2027 EBITDA. BofA likes the margin trend, with EBITDA margin nearing 40%, strong return on invested capital, and an investment-grade balance sheet that beats rivals.
Royal Caribbean has hedged more than half of its expected 2027 fuel costs, giving some cover if fuel prices keep rising. Fuel is a headwind for both cruise lines and airlines. The recent low of $222 was hit in September, about $100 below the current price. BofA also likes the company's investment in Sandals.
