Micron stock jumps after Bernstein upgrade
Shares of Micron Technology Inc. are up 6% in Wednesday trading after Bernstein analyst Mark Newman upgraded the stock to outperform from market perform. The upgrade follows a sharp selloff in memory shares over the past few months. "For Micron, although we still see up to 20% potential further downside in the worst scenario (back to 0.85x book as seen in the 2015/16 downturn), the risk/reward is now too attractive to ignore," Newman wrote. He argued that the recent memory downturn has been quicker than usual, which suggests to him that a rebound might also take place earlier than in past corrections. "We now forecast memory industry profits to bottom in Q2'19 before stabilizing in 2H'19 and recovering in 2020," he wrote. Micron shares are down 15.3% over past three months, while the S&P 500 has dropped 10.2% over the same time. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.