Elpida Memory Inc. surged the most in three months in Tokyo after Mitsubishi UFJ Morgan Stanley Securities Co. rated the world’s third-biggest maker of computer-memory chips as “strong outperform” in new coverage.
The stock jumped 6.6 percent to 1,012 yen on the Tokyo Stock Exchange as of 10:58 a.m. local time, the biggest gain since June 3.
Increasing demand for mobile dynamic-random-access memory chips for smart phones and the current limited supply will “greatly contribute to Elpida’s operating profit,” Mitsubishi UFJ Morgan Stanley analysts Masahiko Ishino and Yoshihito Hasegawa wrote in a Japanese-language report dated Sept. 3. The analysts set the target share price at 1,500 yen.
The Tokyo-based company’s shares have tumbled 33 percent this year, compared with an 8.7 percent decline by the benchmark Topix index.