| | | Micron, Western Digital stocks rise after Susquehanna turns bullish
By Emily Bary
Published: Dec 16, 2019 8:42 a.m. ET
Shares of Micron Technology Inc. MU, +3.22% and Western Digital Corp. WDC, +4.05% are up more than 3% in premarket trading Monday after Susquehanna analyst Mehdi Hosseini upgraded the stocks to positive from neutral. While Hosseini thinks Micron's February-quarter earnings outlook will fall short of consensus projections, he also expects the forecast to mark the bottom for Micron. "Industry dynamics are improving with increased prospects of tightness and shortages by mid-2020," he wrote. "As such, we believe the worst-case [average selling price] and margin profile is now dialed into expectations, with increased prospects of a meaningful recovery in revenues in the latter part of 2020." He's upbeat about Western Digital's prospects for next year as well, writing that the 5G smartphone-build cycle could help lead to a tight supply-demand market for NAND technology. Micron shares have risen 61% so far this year, while Western Digital's stock has increased 47%. The S&P 500 SPX, +0.01% is up 26% so far in 2019.
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