NEW YORK (TheStreet) -- Wells Fargo Securities upgraded Micron Technology (MU) - Get Report to "outperform" from "market perform" on Tuesday.

Shares of Micron were gaining 1.6% to $14.28 in morning trading.

The analyst firm said there is now "upside potential" from Micron's current stock price to its valuation range of $16 to $19.

Wells Fargo lowered its 2015 and 2016 EPS estimates for Micron to $2.31 and $1.10 a share from $2.38 and $1.35 a share, respectively. The analyst firm set its 2017 EPS estimate for the company at $1.80 a share.

"Although we believe that there are many near terms risks for Micron in particular and the memory industry in general, we believe that memory industry financial dynamics have improved in recent years, with some amount of consolidation in the DRAM industry (e.g. the dissolution of Qimonda and the acquisition of Elpida by Micron) and efforts on the part of the major DRAM and NAND manufacturers to improve margins and capital efficiency," Wells Fargo analysts wrote.

TheStreet Ratings team rates MICRON TECHNOLOGY INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate MICRON TECHNOLOGY INC (MU) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The debt-to-equity ratio is somewhat low, currently at 0.60, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, MU has a quick ratio of 1.62, which demonstrates the ability of the company to cover short-term liquidity needs.
  • MICRON TECHNOLOGY INC's earnings per share declined by 38.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MICRON TECHNOLOGY INC increased its bottom line by earning $2.55 versus $1.00 in the prior year. This year, the market expects an improvement in earnings ($2.67 versus $2.55).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.39%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 38.23% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 39.1% when compared to the same quarter one year ago, falling from $806.00 million to $491.00 million.
  • You can view the full analysis from the report here: MU