Micron stock rises 7% as CEO forecasts ‘strong sequential growth’

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Micron’s stock falls after analyst slashed price target, earnings estimates

Shares of Micron Technology Inc. fell 1.5% in premarket trading Friday, after J.P. Morgan slashed its price target and earnings estimates, citing the U.S. government’s ban on business with China-based Huawei and weak DRAM pricing. Analyst Harlan Sur reiterated the overweight rating he’s had on the memory chip maker’s stock for at least the past three years, but cut his price target to $50, which is 46% above Thursday’s closing price, from $64. He also lowered his fiscal 2019 adjusted earnings-per-share estimate to $5.64 from $6.19 and his 2020 projection to $1.21 from $3.90. Micron is slated to report fiscal third-quarter results on June 25, after the close. Sur said the cuts were “primarily the result of the components bans to Huawei (13% customer during Micron’s F1H19), worse than anticipated DRAM pricing and with expectations of a slower recovery as we look to the back half of this year and into next year on macro uncertainty/trade tensions,” Sur wrote in a note to clients. Micron’s stock has tumbled 22.4% over the past three months through Thursday, while the PHLX Semiconductor Index has slipped 1.4% and the S&P 500 has gained 3.5%.

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