Shares of Micron Technology Inc. (MU) are up about 6% in morning trading Monday after Goldman Sachs analyst Toshiya Hari upgraded the stock to buy from neutral. "We believe signs of supply discipline on the part of the memory suppliers (i.e. capex cuts) and price stabilization will serve as potential catalysts for the stock," Hari wrote, as Micron shares have declined 9% so far this year as the PHLX Semiconductor Index has risen about 18%. He argued that the weakness in DRAM and NAND pricing could be short-lived and that, given the stock's underperformance, the pricing weakness already appears to be "well understood by the market." Hari sees signs that the supply/demand balance in both the DRAM and NAND industries will tighten and said that a greater mix of 5G smartphones in 2021 could help accelerate demand. He maintained a $58 price target on the stock, which added 0.3% over the past three months as the S&P 500 has added 11%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 14, 2020 09:36 ET (13:36 GMT)
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