Shares of Micron Technology Inc. (MU) are down 0.6% in premarket trading Wednesday after Wedbush analyst Matt Bryson downgraded the stock to neutral from outperform. While he said that Micron's recently issued outlook made him "even more enthusiastic" about the company's ability to deliver positive earnings despite a trough for the industry, he also sees risk to pricing dynamics going forward, given that "industry conditions have deteriorated" in recent months. "Specifically, only a few weeks ago, we believed that contract pricing for DRAM and NAND in CQ3 would likely hold flat (+/- a few percent) helped by visibility around cloud demand into CQ3," Bryson wrote. "Now, we are less certain as to how firm cloud orders are and we believe contract pricing (both DRAM and NAND) will likely be flat to down with increased availability in the secondary market also likely to further pressure spot and retail pricing." He raised his price target to $55 from $51 in conjunction with the downgrade. Micron shares have added 10% over the past month as the S&P 500 has rallied 9%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
June 10, 2020 08:33 ET (12:33 GMT)
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