Baird’s recent upgrade of Micron Technology to outperform and naming it a top semiconductor pick seems to be a somewhat delayed move. Analyst Tristan Gerra mentioned that there is still significant room for growth with Micron, despite the stock’s recent pullback. This upgrade comes with an increased price target of $150 per share, indicating a potential 31% upside from the previous close. The decision to upgrade Micron is based on positive trends in DRAM, which could lead to a favorable outlook for memory in the next 12-18 months. Even though Micron’s shares have seen a 34% increase this year, there was a 7% decline in the past month.
Morgan Stanley Upgrades U.S. Steel
On the other hand, Morgan Stanley raised its rating on U.S. Steel to overweight from equal weight. Analyst Carlos De Alba sees a significant buying opportunity in U.S. Steel, with a price target of $48. Despite a slight decrease from the previous target of $51, there is still a potential upside of 31.6% over the next year. U.S. Steel has faced challenges this year, including a decline of over 25% due to regulatory concerns regarding Japan’s Nippon Steel acquisition. However, De Alba remains optimistic about U.S. Steel’s transformation into a more flexible steelmaker, emphasizing the value of the company’s growth initiatives. The stock rose 2% in premarket trading following the upgrade.
Analysis of Analyst Calls
The analyst calls on Micron Technology and U.S. Steel highlight contrasting views on the potential for growth in these companies. While Micron is seen as a top pick with significant upside potential, U.S. Steel is considered a buying opportunity despite recent challenges. The decision to upgrade these stocks is based on the assessment of market trends and individual company performances. Baird’s upgrade of Micron is linked to positive developments in the semiconductor industry, while Morgan Stanley’s upgrade of U.S. Steel reflects confidence in the company’s transformation efforts. Investors will be watching closely to see how these recommendations play out in the coming months.
The analyst calls and Wall Street chatter on Monday provide valuable insights into potential investment opportunities in the semiconductor and steel industries. The upgrades of Micron Technology and U.S. Steel by Baird and Morgan Stanley, respectively, reflect differing perspectives on the future prospects of these companies. It will be interesting to see how these recommendations impact the stock performance of Micron and U.S. Steel in the near future. Investors should conduct their own research and consider various factors before making investment decisions based on analyst calls and Wall Street chatter.