Goldman Sachs Downgrades Micron Technology (MU) to Neutral

Goldman Sachs analyst Mark Delaney downgraded Micron Technology (NASDAQ: MU) from Buy to Neutral with a price target of $50.00.

The analyst steps aside given weaker fundamentals in Q4 and in H1 2019 for DRAM and NAND. The analyst believes the DRAM industry is improving structurally from cycle to cycle but downgrades MU for the following reasons:

1. expectations of a GM decline sequentially from Q4 2018 through Cy 2019,
2. Memory downturns that ought to last several quarters and accelerate price declines and,
3. possible downside scenario using P/TBV, P/E, and EV/Sales which could lend MU to trading in a $20-$50 range depending on the magnitude of the downturn.

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $43.80 yesterday.

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