It's not only the generally positive sentiment that's sweeping through markets today that's contributing to the rise in Micron Technology (MU 6.58%) stock. UBS upwardly revised its price target, and investors are taking note.
As of 12:20 p.m. ET, shares of Micron Technology are up 7.4%.
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UBS sees Micron stock benefiting from the current super-cycle
Maintaining its buy rating, UBS upwardly revised its price target on Micron stock today to $535 from $510. Based on Micron's shares closing at $377.58 yesterday, the new price target implies upside of about 42%.
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According to Thefly.com, UBS predicated its new outlook on the belief that the memory industry is in the middle of a super-cycle that will "likely defy traditional analytical norms for the stock."
The higher price target from UBS is especially noteworthy, given that the bears have recently expressed pessimism about Micron stock. On April 2, for example, Erste Group downgraded Micron stock to hold from buy, and shortly before that, Citigroup had lowered its price target to $425 from $510.
The recently raised price target is likely just one factor affecting Micron stock. Believing that the recent market volatility will ebb, investors are returning to growth stocks like Micron after the United States announced a ceasefire agreement last night.
Is it too late to buy Micron stock after its recent rise?
A leading provider of memory solutions, Micron is a popular investment option for tech stock enthusiasts who recognize the company's important role in supporting the growth of artificial intelligence (AI) computing. Rather than prioritizing UBS's higher price target, prospective investors should review the company's recent financial results to determine whether an investment is right for them.
