On Wednesday, Bernstein SocGen Group revised its price target for Micron Technology (NASDAQ: NASDAQ:MU) shares, reducing it from the previous $140.00 to $120.00. Despite the cut, the firm maintains an Outperform rating for the semiconductor company.
The adjustment comes after Bernstein SocGen Group updated its overall High Bandwidth (NASDAQ:BAND) Memory (HBM) forecast, prompting changes at both the company and quarterly level.
The new price target is based on 2.6 times the estimated 3QCY25 tangible book value, a decrease from the earlier multiple of 3.2 times the 2QCY25 tangible book value. "More investors wonder the growth momentum in CY2026 and are unwilling to give as high valuation," the firm said.
Bernstein SocGen Group cited Micron's high valuation and predicted a 15% expansion in book value. The new price target of $120.00 represents an 11% upside from the current level, calculated on a 2.6x price-to-book (P/B) ratio.
The analyst emphasized the recalibration of the valuation multiple as investors reassess the growth prospects and valuation willingness for the upcoming year.
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