Mizuho Securities lowered Micron Technology's price target to $58 (30.6% upside potential) from $63 but maintained a Buy rating on the stock. Shares of the chipmaker declined 1.8% on Tuesday.Mizuho Securities analyst Vijay Rakesh lowered Micron’s (MU) estimates for the November quarter citing "much weaker Enterprise demand, even with Cloud remaining healthy and handsets a tailwind". Rakesh added that "2H20E NAND/DRAM pricing headwinds and modestly softer GM" remain a drag. Nonetheless the analyst still views the stock as a Buy driven by "strong gaming/5G/data center tailwinds".On Aug. 13, Micron’s CFO David Zinsner warned that the demand outlook for memory chips is worsening. Zinsner cautioned that 1Q (September to November) revenues could come below the earlier guided range of $5.4-$5.6 billion.Deutsche Bank analyst Sidney Ho last week downgraded Micron to Hold from Buy citing lower memory price assumptions due to supply-demand mismatch. However, Ho kept the stock's price target unchanged at $48 (8.1% upside potential).Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 17 Buys, 8 Holds, and 1 Sell. Given the stock's 17.4% year-to-date decline, the average price target of $63.50 implies upside potential of about 43%. (See MU stock analysis on TipRanks).Related News: Bulls vs Bears on Micron: Which Side Should Investors Take? Barclays Cuts Micron’s PT On Chip Demand Woes Micron Drops 5% As CFO Warns 1Q Sales Could Miss Guidance More recent articles from Smarter Analyst: * Australia Inks Deal With AstraZeneca For Supply Of Covid-19 Vaccine Candidate * Verona Up 10% On Lung Trial Kick Off; Analyst Initiates Stock At ‘Buy’ * Etsy Declares $650M Convertible Note Offering; Stock Up 200% YTD * CytoDyn Seeking UK Fast-Track Approval For Leronlimab In Covid-19
No comments:
Post a Comment