Micron Technology's Stock Bounces Off 2-year Low After Analyst Upgrade

Shares of Micron Technology Inc. surged 3.4% in midday trade Tuesday, bouncing off a two-year closing low in the previous session, after the memory chip maker was upgraded to outperform from market perform at Wells Fargo. Analyst David Wong said while there are still "many near risks for Micron in particular and the memory industry in general," he upgraded the stock because there is now "upside potential" to his valuation range. That range of $16 to $19 was 14% to 35% above Monday's closing price of $14.06, which was the lowest close since Sept. 3, 2013. Meanwhile, Wong lowered his full-year 2015 earnings-per-share estimate to $2.31 from $2.38, and his 2016 estimate to $1.10 from $1.35, because of the decline in dynamic random-access memory pricing over the last few weeks. Micron's stock has shed 22% over the past three months, while the PHLX Semiconductor Index has lost 14% and the S&P 500 has declined 8.5%.