Shares of Micron Technology Inc.
MU,
are up more than 3% in premarket trading Tuesday after Citi Research analyst Christopher Danely upgraded the stock two notches, to buy from sell. “After a false start in 2020, we expect DRAM pricing to sustain its upward trajectory beginning in 1Q21 given the largest supply/demand imbalance since 2017,” he wrote in a note to clients. “Although the stock has appreciated an impressive 40% in the last two months and is trading at a higher valuation than at any time during the previous upturn, we believe there is still plenty of upside as DRAM upturns usually last two years and supply/demand looks favorable over at least the next year.” Danely raised his price target on the stock to $100 from $35. Shares have gained 56% over the past three months as the S&P 500
SPX,
has risen about 9% and as the PHLX Semiconductor Index
SPX,
has added 25%.