While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Micron Technology (NASDAQ:MU) gained nearly 1% in pre-market trading Monday after Baird upgraded the semiconductor company from neutral to outperform.

So what: Along with the upgrade, analyst Tristan Gerra boosted his price target to $42 (from $25), representing about 35% worth of upside to Friday's close. So while contrarian traders might be turned off by Micron's price strength over the past year, Gerra's call could reflect a sense on Wall Street that industry tailwinds give the stock plenty of room to run.

Now what: According to Baird, Micron's risk/reward trade-off remains rather attractive at this point. "Secular improvement in supply/demand trends combined with an improving cash position should fuel both Micron's earnings and multiple momentum over time," said Gerra. Of course, with Micron shares now up more than 150% from their 52-week low and sporting an industry-topping price-to-sales multiple of 2.5, much of that bullishness might already be baked into the valuation.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.