Micron Technology Stock Has 30% Upside, According to 1 Wall Street Analyst
Micron Technology (NASDAQ: MU) stock is red hot -- more than doubling the stock price performance of the S 500 over the past year as investors bet that Micron's high-bandwidth memory (HBM) chips will prove essential to keeping the artificial intelligence revolution going.
One analyst who's particularly optimistic about Micron's prospects is Wolfe Research's Chris Caso. On Wednesday, Caso raised his price target on Micron to $120 a share, implying that Micron stock will gain more than 30% over the next 12 months or so.
Historically, Micron stock has traded for about 11 times its average earnings -- a conservative multiple that's appropriate for a cyclical stock that can grow quickly when the semiconductor cycle is healthy, but also loses a lot of money during downturns. Caso argues that Micron should be worth closer to 14 times its projected 2025 earnings, though, on his assumption that Micron will earn nearly $8.40 per share next year, and potentially outearn its previous record of $11.51 per share (hit in 2018) by the time this earnings cycle peaks.
Source Fool.com
Micron Technology Inc. Stock
Currently there is a rather positive sentiment for Micron Technology Inc. with 74 Buy predictions and 5 Sell predictions.
With a target price of 119 € there is a slightly positive potential of 2.08% for Micron Technology Inc. compared to the current price of 116.58 €.
