Barclays reduced the price target on Micron Technology but maintained a Buy rating on the stock. Shares in the chipmaker declined 1.2% on Friday.
Barclays analyst Blayne Curtis lowered Micron’s (MU) price target to $55 (20.6% upside potential) from $60, after the company warned that it could miss 1Q revenue guidance. The new PT reflects “near-term softness after the company indicated they are seeing a softer demand environment in the Enterprise channel as well as some impact from later qualifications of their 1Z products, which add up to make their August-end quarter revenue much more back-end loaded than anticipated.”
In addition, UBS analyst Timothy Arcuri lowered the the stock’s price target to $63 (38.2% upside potential) from $66, while maintaining a Buy rating.
Last week, Micron’s CFO David Zinsner stated that the company’s 1Q (September to November) sales could miss the forecast of $5.4 billion-$5.6 billion.
Currently, 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 year-to-date stock price decline of 15.2%, the average price target of $63.73 implies upside potential of about 40% to current levels. (See MU stock analysis on TipRanks).
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