Shares of Micron Respond to RBC Downgrade

Shares of Micron Technology Inc. MU fall 2.12% in pre-market trading following RBC Capital Markets analyst Doug Freedman downgraded the company from Outperform to Sector Perform. Freedman reported that Micron's valuation is “overly discounting risks including softer mobile trends, JV structure (Inotera JV) limiting operating margin expansion, increasing DRAM, and NAND supply.” The analyst added that bulls are looking for a $3+ per year in earnings per share power which is achievable but more likely later than expected. RBC Capital Markets reiterated a $19 price target on Micron. Micron Technology is to report FY1Q results January 7th. According to Bloomberg, the consensus EPS estimate is $0.42 and revenue estimate is $3.71 billion. Freedman expects a “solid beat” for FY1QEPS, as in-line results may pressure stock with high expectations. Shares of Micron closed at $21.66 on Thursday.