Shares of Micron Technology Inc. (MU) are up 2.7% in premarket trading Monday after Goldman Sachs analyst Mark Delaney upgraded the stock to buy from neutral, reflecting his growing optimism on memory stocks and his view that companies with excess inventory will be able to deplete their inventory more quickly than anticipated. "We believe that Micron is the best stock to express our view," he wrote. "Importantly, we believe that Micron's stock will trade more on memory pricing trends and intermediate term EPS expectations than FY20 earnings." Delaney is skeptical that Chinese companies will be able to enter the DRAM market in the next few years given their limited progress in the area thus far. He raised his price target Micron's stock to $56 from $40. Shares are up 43% so far this year, as the S&P 500 has gained 19%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 22, 2019 08:59 ET (12:59 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.