Micron Technology (MU) PT, Estimates Cut at Wedbush; No Bottom Yet

Wedbush analyst Betsy Van Hees reiterated a Neutral rating and lowered her price target on Micron Technology (NASDAQ: MU) to $17.00 (from $19.00) ahead of earnings on Thursday, October 1. While the analyst believes DRAM oversupply is bottoming out, but we are not there yet.

Van Hess commented, "Although we believe we are getting closer to the bottom of the DRAM oversupply cycle, following our recent industry checks, we don’t think we are quite there yet. We are concerned that the near-term spot PC DRAM pricing stabilization could be short lived as the uplift from typical holiday seasonality in CQ4 is looking to be muted due to weak PC and mobile demand affected by macro uncertainty. We look for MU’s FQ4 results to miss and a guide down for FQ1. While the stock has declined about -35+% since the FQ3 earnings call vs. the -15+% of SOX over the same time period, we don’t view the risk/reward as compelling ahead of earnings and recommend investors continue to stay on the sidelines until there is better visibility on end market demand and evidence that DRAM supply cuts are positively impacting pricing. Our new 12-month PT of $17 (from $19) is based upon about 9x (unchanged) our CY:16 pro forma EPS estimate of $1.94 (from $2.13)."

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 $15.34 yesterday.

You May Also Be Interested In

• QuantumScape (QS) PT Lowered to $6 at Truist Securities
• American International Group (AIG) PT Raised to $89 at Piper Sandler
• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold