Reversing the downward trajectory that it had experienced last week, shares of Micron Technology (MU +8.40%) are rising today. While the S&P 500 is up over 1% as of this writing, investors are bidding shares of the memory and storage solutions specialist higher in response to a bullish new outlook on Micron stock.
As of 11:04 a.m. ET, shares of Micron are up 7%, paring back some of their earlier 8.1% gain.
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One firm sees ample upside to Micron stock
Maintaining its overweight rating, Morgan Stanley hiked its price target on Micron stock today to $338 from $325. According to thefly.com, Morgan Stanley based its action on the belief that the recent dip is overblown.
NASDAQ: MU
Key Data Points
Based on Micron's shares closing at $207.37 on Friday, Morgan Stanley's price target implies an upside of 63%.
Is now a good time to click the buy button?
With investors learning of Morgan Stanley's optimistic outlook on Micron stock today, it's unsurprising that investors are sending shares higher. With auspicious price targets like these, however, it's essential to remember that analysts often have shorter investment horizons than the multi-year holding periods that The Motley Fool favors.
Trading at 13 times forward earnings, Micron stock doesn't seem exorbitantly priced – especially considering the steep valuations of several semiconductor peers – so potential investors shouldn't be frightened off with the stock's rise today.
