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Micron Technology hits 52-week high

Micron Technology shares scampered up 5 1/8 to a 52-week high of 134 Monday after Bear Stearns upgraded the chipmaker from a "neutral" recommendation to a "buy" and boosted its 12-month price target to $225 a share.

Analyst Charles Boucher said inventories for dynamic random access memory semiconductor chips, which have risen since the fourth quarter of last year, are starting to decline.

"Insufficient DRAM capital spending during the last few years will likely cause worsening DRAM supply shortages later in 2000," Boucher said in a research note. "DRAM bit growth should accelerate during the remainder of 2000, causing average selling prices to rise and leading to stronger revenue and earnings growth for Micron."

Due to the DRAM price erosion, Boucher cut his second-quarter estimate from 82 cents a share to 73 cents a share. He raised his fiscal 2000 estimate to $4 a share from $3.43 a share.

Last quarter, Micron beat Street estimates, earning $341 million, or $1.19 a share, on sales of $1.6 billion.

First Call consensus expects it to earn 75 cents a share in its second quarter and $3.69 in the fiscal year.

Its shares fell to a low of 34 1/4 in May.

Fourteen of the 22 analysts tracking the stock maintain either a "buy" or "strong buy" recommendation.