UPDATE: Bank of America Upgrades Micron Technology to Buy, Raises PT as Upturn Continues

In a report published Wednesday, Bank of America analyst Simon Dong-je Woo upgraded the rating on

from Underperform to Buy, and raised the price target from $22.00 to $40.00. In the report, Bank of America noted, “We upgrade our rating on Micron from Underperform to Buy with a new PO of $40.0 (FY15E implied P/E 14x, PBR 3.1x). The stock has already moved up strongly (up 33% YTD) but we think further upside will occur,In our view, key catalysts are solid chip pricing environment (tight supply) and cost competitiveness. Our EPS revisions for FY15-16E are c.50% on average at higher/lower ASP/cost. We also expect dividend payment from FY15-end. Lower cyclical risk and higher shareholder return lead to bigger EVA (WACC down vs ROE up); clearly a different cycle.” Micron Technology closed on Tuesday at $29.48.