Analyst: Micron Stock Is "Extremely Cheap"

MU remains stuck below recent resistance, though

Managing Editor
Sep 14, 2018 at 3:03 PM
facebook X logo linkedin


Despite a recent chip stock sell-off and downgrade earlier in the week, Micron Technology, Inc. (NASDAQ:MU) stock is trading 1.7% higher today at $44.38 after receiving some bullish analyst attention ahead of the company's fiscal fourth-quarter earnings report next Thursday, Sept. 20. Specifically, Credit Suisse reiterated its "buy" rating and $90 price target -- double current trading levels. The analyst in coverage called the stock's recent dip a good buying opportunity, and said Micron's valuation is "extremely cheap."

On the charts, MU has given back 24% in the past three months, and earlier this week fell to its lowest point since February. The shares had the makings of a rally near the end of August, but were promptly rejected by their 50-day moving average, a trendline that emerged as resistance following a late-June bear gap.

micron stock daily chart sept 14

Nevertheless, analysts are firmly entrenched in the bullish camp. Of the 26 brokerages covering the security, only six rate it a "hold," with zero sells on the books. Furthermore, MU's average 12-month price target of $80.10 is an 80.6% premium to the stock's current perch. 

The optimism is seen in the options pits, too, with peak levels of open interest currently found at the September and October 55 calls. Data from the major options exchanges confirms significant buy-to-open activity at each strike, meaning speculative players are betting on a breakout north of $55 over the next five weeks.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI