Veteran computer memory products maker Micron Technology (MU 0.61%) didn't exactly get off to a roaring start on the stock exchange this week. The company's shares ended the day almost 4% lower, following a price target cut from an analyst tracking the company. That slide was notably steeper than the 0.3% dip of the S&P 500 index.
A $10 haircut
The pundit making the cut was Needham's Quinn Bolton. Before the market open Monday, Bolton reset his Micron price target to $140 per share from the previous $150. That wasn't enough to change the recommendation, though, as the analyst maintained his buy rating.
The adjustment came on the heels of Needham's annual semiconductor industry conference. During the event, Micron management intimated that shipments of its memory products would be essentially flat sequentially in its fiscal first quarter of 2025 (which is to begin in September). Originally, Micron had forecast that, collectively, shipments would "strengthen modestly," according to Bolton.
The analyst added in his latest research note, "Management also stated the company is walking away from near-term deals where pricing is aggressive, and that client demand has moderated given inventory builds earlier this year."
NASDAQ: MU
Key Data Points
Current quarter still looks good, though
That new state of affairs was the key factor in the price target cut; Bolton now feels that Micron might not hit its consensus analyst estimates. However, he and his peers are generally expecting a prosperous fourth quarter of fiscal 2024. On average, they're modeling robust (71%) year-over-year revenue growth, to $6.84 billion. They've also forecast a flip into the black on the bottom line, to a $1.02-per-share profit from a $1.07 loss in the same quarter of fiscal 2023.
