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BMO Capital analyst Ambrish Srivastava upgraded Micron Technology (MU) to Outperform from Market Perform with a price target of $110, up from $90.

The analyst sees potential for a continued constrained supply environment into 2022 driven by a combination of supply dynamics, Capex discipline, and demand drivers.

This is not a call about the upcoming quarterly earnings, but a call on "positive underpinning to fundamentals " leading to a continued supply-demand imbalance 2022, with positive implications for DRAM pricing, Srivastava tells investors in a research note. Srivastava points out that Micron shares have underperformed meaningfully versus the PHLX Semiconductor Sector Index (SOX) year-to-date.