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Micron Technology (MU) Stock Falls on Analysts' Notes Ahead of Earnings

NEW YORK (TheStreet) -- Shares of Micron Technology (MU - Get Report) were falling 5.6% to $14.08 on Monday following several negative notes from analysts ahead of the chipmaker's fiscal fourth quarter earnings report, which is due after the market closes on Thursday.

Wedbush Securities lowered its price target for Micron to $17 from $19, maintaining its "neutral" rating for the company in a note to investors. Wedbush analyst Betsy Van Hees said she believes the DRAM oversupply is bottoming out, but that it isn't there yet.

"We are concerned that the near-term spot PC DRAM pricing stabilization could be short lived as the uplift from typical holiday seasonality in CQ4 is looking to be muted due to weak PC and mobile demand affected by macro uncertainty," Van Hees wrote. "We look for MU's FQ4 results to miss and a guide down for FQ1."

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Nomura also expects Micron to forecast results below the consensus for November, according to Barron's. The analyst firm agrees that we haven't reached the bottom of the DRAM oversupply.

"While DRAM pricing started improving in early September, pricing has since rolled over in both DRAM (excess PC and smartphone inventories) and NAND (aggressive pricing, greater TLC production)," Nomura analyst Romit Shah wrote. "In addition, cost reductions have been slowing as a result of migrations (20nm) and a mix shift to DDR4. We expect Micron's...


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