Wedbush Downgrades Micron Technology (MU) to Neutral; Moving to Sideline Following Recent Channel Checks

November 3, 2009 9:20 AM EST

Wedbush downgrades Micron Technology (NYSE: MU) from Outperform to Neutral. Price target lowered from $8.50 to $6.

Wedbush analyst says, "We are moving to the sidelines following our recent round of industry checks that indicate CQ1 memory supply will likely exceed demand pressuring ASPs, gross margin and revenue lower. While we expect memory data points to remain positive over the next few weeks due to our belief that the overall memory supply/demand environment is coming into balance, we believe the memory trade has peaked and we are downgrading Micron to a Neutral...Although we continue to believe Micron is the best name in the memory space given its industry leading memory cost structure and strong positioning at tier I OEMs, we recommend investors' avoid shares. We look for a return to a more favorable memory supply/demand environment to get positive on the stock...We believe given the broad market recovery of the semiconductor industry the appropriate valuation metric is now forward P/E...Adjusting our FY:10E and introducing our below Street FY:011 estimates."

To see more analyst ratings on MU Click Here.

Micron Technology, Inc., together with its subsidiaries, engages in the manufacture and marketing of semiconductor devices worldwide.

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