Shares of chipmaker Micron (NASDAQ:MU) rose on Monday following an upgrade from Goldman Sachs, as the firm said it is more bullish on memory chip stocks.
Shares increased in price $1.14, or 2.4% to $46.59, in the first hour, after Goldman upgraded Micron to buy from neutral and raised its 12-month price target to $56 from $40. The new price target is 23% higher from here.
"We are now more positive on global memory stocks...we believe that Micron’s stock will trade more on memory pricing trends and intermediate term EPS expectations than FY20 earnings," Goldman Sachs’ Mark Delaney said in a note to clients on Sunday.
Goldman Sachs said it had been "cautious" on near-term fundamentals of memory chips companies because excess inventory would lead to weaker pricing in the near-term.
The firm raised its full-year 2019, 2020 and 2021 earnings per shares estimates.
Also, the company, based in Boise, Idaho, announced that its shareholder rights plan would expire in accordance with its terms last Friday. Shareholders henceforth are not required to take any action as a result of this expiration.
In connection with the expiration of the Rights Plan, Micron will take routine steps to voluntarily de-register the related common stock purchase rights under the Securities Exchange Act of 1934, as amended and to delist the common stock purchase rights from the NASDAQ Stock Market.
These actions are administrative in nature and will have no effect on Micron’s common stock, which continues to be listed on the NASDAQ Stock Market and registered under the Exchange Act.
