Long

$MU getting accumulated with PT $140-220

- GAAP eps is growing substantially in 2025 and 2026 but market hasn't rewarded
- It appears that whales are accumulating the stock and/or suspicious of future demand.
- If analyst expectation and company's projection is true then this stock is grossly undervalued.

Based on the fundamentals:

Year | 2025 | 2026 | 2027
Gaap EPS | 6.32 | 9.65 | 11.27
EPS growth | 730.48% | 52.72% | 16.80%
Bear case ( for. p/e = 15 ) | $94.8 | $144.75 | $169.05
Base case ( for. p/e = 20) | $126 | $193 | $225
Base case ( for. p/e = 25 ) | $158 | $241 | $281.75
Bull Case ( for p/e = 35 ) | $189 | $289 | $338

Note

Even with bear case, if I buy shares under 100, I will get 50% return on investment by the end of 2026. That's 25% CAGR which should be enough to beat the market returns for the next 2 years.

This is the bare minimum without even considering valuation expansion and getting assinged higher p/e multiple for positive surprises.

Note

Only thing scaring the investors is that would be able to milk for those memory chips or would samsung or SK Hynix outbid them in this race

Note

- One of the best risk to reward opportunity in the market!
- Investors are very cautiously optimistic in this name. It appears that they are doing wait & see approach. if the earnings reassures investors that is seeing demand for its memory solutions because of increasing LLM ( large language models ) applications in the industry then we should see a nice sustained rally.

bigbull037

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bigbull037