Long-established maker of computer memory products, Micron Technology (NASDAQ: MU), didn't get off to a great start on the stock market this week. The stock closed down nearly 4% after analysts who follow the company lowered their price targets, significantly outperforming the S&P 500 Index's 0.3% decline.
$10 haircut
The pick was Needham analyst Quinn Bolton, who raised his price target on Micron to $140 a share from $150 a share before the market opened on Monday, but stopped short of changing his recommendation, as the analyst maintained a buy recommendation.
The adjustment came on the heels of Needham's annual semiconductor industry conference, where Micron executives indicated that memory product shipments would be roughly flat sequentially in the first quarter of fiscal 2025, which begins in September. Micron had initially forecast a “moderate increase” in shipments overall, Bolton said.
“Management also noted that pricing is retreating from aggressive short-term trades, with customer demand easing following inventory build-up earlier in the year,” the analysts added in their latest research note.
This quarter still looks good
This new situation was the primary reason for the price target cut. Bolton now feels that Micron may fall short of analysts' expectations. But he and his colleagues generally expect a strong fourth quarter of fiscal 2024. On average, he expects solid revenue growth of $6.84 billion, up 71% year over year. He also expects the company to turn a $1.02 profit per share in fiscal 2023, up from a loss of $1.07 in the same quarter.
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Eric Volkman does not hold any positions in any stocks mentioned. The Motley Fool does not hold any positions in any stocks mentioned. The Motley Fool has a disclosure policy.
Why Micron Technology shares fell 4% today was originally published by The Motley Fool.
