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Micron Technology (MU) PT Lowered to $100 at JPMorgan Ahead of Earnings

September 24, 2021 6:28 AM EDT
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Price: $117.89 -1.14%

Rating Summary:
    45 Buy, 7 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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JPMorgan analyst Harlan Sur lowered the price target on Micron Technology (NASDAQ: MU) to $100.00 (from $140.00) ahead of F4Q21 earnings. JPM is looking for revenue/EPS in-line with its guidance range ($8.0-$8.4B/$2.20-$2.40) as DRAM and NAND pricing/demand trends remained strong as expected through the quarter.

The analyst reiterated an Overweight rating, stating "we see near term DRAM pricing softness going into C4Q as supply-constrained PC shipment weakness (driving softer DRAM pricing) offsets strength in server and smartphones, which should drive a conservative tone/guidance for MU’s Nov-Q outlook. We see DRAM pricing softness continuing into the 1H of CY22 as weaker seasonality sets in for most end-markets followed by a positive inflection starting mid-CY22 as overall demand inflects higher amidst a disciplined supply-side environment. We believe that memory suppliers will use CQ4/1H22 as an opportunity to build-back DRAM inventories (currently below target ranges) and this will further limit near-term pricing downside. While the negative sentiment around the memory sector over the past several months has led memory stocks to underperform, we believe any concerns about a downturn are overblown given historical memory downturns are DEMAND driven AND coincide with overall semi industry downturns, which neither we nor the market has discounted at this point. In fact, we believe the overall semi demand environment remains healthy augmented by a still widening supply/demand gap."



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