UPDATE: JPMorgan Upgrades Micron Technology (MU) to Overweight

(Updated - October 15, 2014 1:46 PM EDT)

JPMorgan upgraded Micron Technology (NASDAQ: MU) from Neutral to Overweight with a price target of $36 (unchanged). Analyst Harlan Sur noted strong demand fundamentals.

"We are upgrading Micron Technology to Overweight (from Neutral) with a $36.0 Dec-15 price target driven by strong memory (DRAM and NAND) fundamentals, continued memory penetration into fast-growing markets (enterprise and client SSDs, DDR4/Grantley upgrade cycle), memory content growth in datacenter and smartphones, disciplined capacity/supply addition plans, and attractive valuations," said Sur.

"Despite recent concerns around industrial/automotive end-markets and concerns on a slowdown in China, we have been saying that the PC, datacenter, enterprise networking, and consumer markets remain relatively healthy. MU has declined 20% since its peak in mid-September (versus a 15% pullback in the SOX index) and is now trading at 7x C2015E EPS versus our large-cap semi universe at 12x. Our very recent research efforts lead us to believe that memory (DRAM and NAND) fundamentals remain healthy, especially in DRAM where we believe Micron is still booking quarterly-based pricing contracts with its key OEMs, memory content growth in PC and servers continues to increase and mobile DRAM content growth in global smartphones (including China) continues. Longer-term, we believe DRAM is in a multi-year growth stage and expect the NAND market to improve over 2H14," he added.

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $27.39 yesterday.

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