Sept. 6 (Bloomberg) -- Elpida Memory Inc. surged the most in more than a year 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 soared 9.5 percent to 1,039 yen at the close on the Tokyo Stock Exchange, the biggest gain since August 2009.
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 31 percent this year, compared with a 7.6 percent decline by the benchmark Topix index.
To contact the reporter on the story: Kana Nishizawa in Tokyo at firstname.lastname@example.org.
To contact the editor responsible for this story: Darren Boey at email@example.com.