Analyst: Micron Stock Is "Extremely Cheap"

MU remains stuck below recent resistance, though

Managing Editor
Sep 14, 2018 at 3:03 PM
facebook twitter 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.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1