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Shares of Micron Respond to RBC Downgrade

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Shares of Micron Technology (NASDAQ: 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.

Latest Ratings for MU

DateFirmActionFromTo
Apr 2019Initiates Coverage OnNeutral
Apr 2019DowngradesOutperformMarket Perform
Apr 2019DowngradesEqual-WeightUnderweight

View More Analyst Ratings for MU
View the Latest Analyst Ratings

Posted-In: Doug Freedman RBC Capital MarketsAnalyst Color Downgrades Reiteration Analyst Ratings

 

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