$Micron Tech(MU.US)$Sandisk(SNDK.US) trend looks bullish!

Hello friends of SanDisk and Micron Technology! When reading institutional research reports, you need to study them carefully to see if there are any issues with the valuation logic and what the basis is. Don't just look at the results without considering the process. Today, let's talk about Morgan Stanley's research report; it's very interesting.

On June 3rd, Morgan Stanley gave a target price of $1050 for Micron Technology and $1750 for SanDisk. Many investors exclaimed, "Isn't the target price already reached?" Don't worry, this article provides Morgan Stanley's valuation algorithm and logic. To summarize: Earnings per share are calculated based on fiscal years 2025-2026. The missing Q4 earnings for SanDisk and Micron Technology are calculated based on outlook. The valuation is given at around 28 times, which seems relatively reasonable.

Let's tentatively believe Morgan Stanley's algorithm is reasonable. According to this logic, half a year later would be early December. Let's extrapolate: For SanDisk, remove the earnings from the first two quarters and add the earnings from the second half of the year, which would be the full-year earnings for the 2026 calendar year. My calculation exceeds $150; using $150 for calculation, and based on Morgan Stanley's 28x valuation, that's $4200. This data will need to be verified by two quarterly reports from now until early December.

Let's wait and see what happens!

One more thing: My articles only express opinions on medium-term trends and do not make judgments on short-term price movements. Please manage your own short-term entry and exit points.