Micron Technology (MU) traded 4% lower on Tuesday morning, after RBC Capital Markets lowered its price target.
RBC analyst Amit Daryanani reiterated his rating of outperform while lowering his price target from $83 to $70. Daryanani cited weakness for flash memory using the “NAND” and “DRAM” technologies, which is central to many of Micron’s products.
Other analysts have also cited this weakness, indicating that a consensus about flash memory may be forming.
While Daryanani expects this trend to continue into 2019, he also believes the pressure will be offset by cost reductions. As such, his new price target still represents a 60% premium over the previous closing price.
In reviewing the market cycles for MU, we can see that the stock continues to trade in the declining phase of its current cycle.
As a new intermediate cycle is due to start in the next few weeks, it may be too late to sell. In any case, we believe this will produce a short-term bottom.
Micron Technology (MU) Stock Chart with Weekly Bars
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