Goldman Sachs Cuts Numbers on Micron (MU) Ahead of Q3 Results

Goldman Sachs lowered its price target on Micron Technology (NASDAQ: MU) from $8 to $7.50 and reiterated its Sell rating ahead of Q3 earnings on June 23.

Goldman believes the May-quarter result will be slightly above the Street due to better pricing in April on post-earthquake pull-in demand. However, they sees risk to Q4 estimates due to lower DRAM and NAND ASPs. The firm said "checks last week in Asia suggested pricing would be down due to increased inventory coupled with weaker PC and handset sale."

The firm cut Q4 estimates from $2.63 billion/$0.28 TO $2.52 billion/$0.20, which is below the consensus of $2.53 billion/$0.24. Goldman also lowered CY11 EPS from $0.80 to $0.65, versus the consensus of $0.77. They maintained CY12 at $0.80, which is well below the consensus of $1.29.

For more ratings news on Micron Technology click here and for the rating history of Micron Technology click here.

Shares of Micron Technology closed at $7.91 yesterday.

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