Is Micron Really Worth $100 Per Share?
While the overall technology sector has been booming of late, there are still some individual names that haven't achieved the massive runs that many software and cloud stocks have seen. Though it's up about 50% from its March lows, Micron Technology (NASDAQ: MU) stock is still over 20% below its February highs. It also trades at just 1.5 times book value, which is extremely low for a technology company.
The shares currently trade for around $49 per share. Micron just had one sell-side analyst reiterate his price target of $100 per share, over 100% upside form its current price. One would be hard-pressed to find an analyst projecting as much upside for another tech stock, given the Nasdaq's huge run over the past few months.
Another analyst also has a $35 price target on Micron, or 30% downside from these levels. The extremely wide range shows the inherent uncertainty in Micron's earnings power. Is Micron potentially a huge winner in the year ahead or will it continue to lag the tech sector?
Source Fool.com