Wedbush Cuts Price Target on Micron Technology (MU) Following 4Q15 EPS Beat

Wedbush maintained a Neutral rating on Micron Technology (NASDAQ: MU), and cut the price target to $15.00 (from $17.00), following the company's 4Q15 earnings results. EPS of $0.37 on revenue of $3.6B was above the Street's $0.32 EPS and $3.6B revenue.

Analyst Betsy Hees commented, "Micron’s (MU) FQ4 (Aug) results beat the Street’s lowered expectations and the new CFO cleared the decks, guiding FQ1 down well below the Street, but essentially in-line with whisper numbers. While MU had a relief rally in AHs trading and bulls will argue that we are at the trough, we maintain our NEUTRAL rating as we continue to believe the trough is not quite here yet. MU noted on the call that PC DRAM demand outlook remains uncertain and that PC DRAM pricing was seeing mild softness off the recent highs which we believe supports our concerns that once we pass peak seasonality in early November, there will be renewed PC DRAM ASP declines pressuring MU’s earnings and potentially driving yet another reset to Street estimates. Our new 12-month PT of $15 (from $17) is based upon about 9x (unchanged) our CY:16 pro forma EPS estimate of $1.61 (from $1.94)."

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $14.77 yesterday.

You May Also Be Interested In

• Take-Two Interactive (TTWO) PT Raised to $368 at BofA Securities
• Southwest (LUV) PT Raised to $61 at UBS Ahead of Q2 Print
• Goldman Sachs Starts Lovisa Holdings Ltd (LOV:AU) at Neutral