Bank of America Reiterates Buy, Lowers Target to $8 on Micron Technology

Bank of America maintains its Buy rating on Micron Technology (NASDAQ: MU) and lowers its price objective to $8 from $9.30 per share to reflect muted DRAM momentum.

BofA says, "Our revisions are mostly on worse-than-expected DRAM pricing momentum, but this is already well known, as is a deep downturn in the spot market (lower ASP/margins). However, our new forecasts still show solid EBITDA margins (37/39% in FY12-13E); no cash burn, unlike the previous cyclical downturn. NAND estimate changes are marginal, and we still expect over 10% OPM."

MU closed at 5.55 per share on Thursday.