Analysts Trimmed Price Targets Up To 11% On Micron Post Guidance Revision

Micron Technology, Inc MU cut its Q4 outlook to reflect declining bit demand growth for DRAM and NAND amid macro uncertainties and supply chain constraints.
Citigroup analyst Christopher Danely maintained Micron with a Buy and lowered the price target from $80 to $75 to reflect three signs of a bottom of lower capex, trading near trough valuation, and having most of the downside in consensus. The guidance cut did not surprise him.
He noted that Micron has been a leading indicator of the downturn this year and continues to expect a correction in the auto and industrial end markets. He believes every company will lower guidance due to the recession.
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Mizuho analyst Vijay Rakesh reiterated Micron with a Buy and cut the price target from $84 to $75, given near-term headwinds but OEMs maintaining supply discipline.
He believed Micron's significant cuts are behind though macro weakness remains a headwind.
Rosenblatt analyst Hans Mosesmann reiterated a Buy and $100 PT.
He believed it suggested a significant kitchen sink dynamic and management's actions on the CapEx side to provide a setup for calendar 2023 for DRAM and NAND bit supply growth to meaningfully below average demand bit growth of high teens and mid-to-high 20's respectively.
Price Action: MU shares closed higher by 3.80% at $61.40 on Wednesday.