UPDATE: RBC Upgrades Micron Technology

RBC on Monday upgraded Micron Technology (NASDAQ: MU) to Outperform from Sector Perform as the firm believes Micron is to play longer-term on favorable changes in the memory industry.

RBC analyst Doug Freedman backs the upgrade, stating, "On the DRAM side, higher margin levels are likely sustainable given mix-shift movements,upcoming 20nm cost-downs, fundamental industry shifts in participants, and tight industry supply (low channel inventories)."

Freedman continued to say, "The positive nature of the memory industry could result in Micron evaluating a cash return strategy for shareholders in the coming years."

Freedman concluded, "Our view remains that the memory industry is benefiting from the law of diminishing cost savings, which is expected to result in a multi-year cycle of higher revenues and operating margins in both DRAM and NAND."

Micron shares were up $0.76 to $26.79 on Monday morning.