Potential Disruptions to Memory Sector Likely a Positive, Wedbush Says, Following Xi'an Lockdown
MT NEWSWIRES 11:09 AM ET 12/29/2021
Symbol Last Price Change | MU | 96.48 | +3.54 (+3.8089%) | | WDC | 66.86 | +4.02 (+6.3972%) | | QUOTES AS OF 12:41:31 PM ET 12/29/2021 |
11:09 AM EST, 12/29/2021 (MT Newswires) -- Potential disruptions to the memory industry as a result of the lockdown of the Chinese city Xi'an are "likely to result in favorable near-term implications," said Wedbush analyst Matt Bryson on Wednesday, "with pricing trends pulled forward and first-quarter contract negotiations weighted in the manufacturers' favor."
The lockdown was precipitated by the outbreak of the omicron variant, and will likely impact Samsung -- which has a NAND production facility in the area -- and Micron Technology's(MU) site which does testing and packaging. Micron is said to be in talks with the local government regarding continued production.
"[A]ny rising tide should benefit all names," Wedbush said in a report to clients, "including Micron, Samsung, Hynix, etc." Wedbush noted it prefers Western Digital(WDC) , but the memory sector as a whole is expecting "strong demand trends through 2022."
Wedbush has a neutral rating and a $100 price target on Micron. The stock has an average rating of outperform and price targets ranging from $58 to $165, according to analysts polled by Capital IQ.
Wedbush has an outperform rating and $70 price target on Western Digital(WDC). The stock has an average rating of outperform and price targets ranging from $55 to $97, according to analysts polled by Capital IQ.
Micron is up more than 3% in Wednesday morning trading. Western Digital(WDC) is up nearly 6% and trading above its 200-day moving average for the first time since August.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: mtnewswires.com
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