One Rampart Street firm is getting worried about Micron shares after the pedigree’s surge so far this year.
Micron reported better than count oned fiscal second-quarter earnings Thursday and gave financial guidance for the next put up above expectations.
But Citi Research is concerned lower flash homage pricing will hurt the chipmaker’s financial results later this year. As a upshot the firm lowered its rating to neutral from buy for Micron shares.
“We be enduring had some concern on Micron stock for a few months due to our fears of NAND [jiffy memory] rolling over. NAND pricing declined over 10% QoQ for the foremost time in two years and the upside to estimates is diminishing,” analyst Christopher Danely indited in a note to clients Friday. “We are lowering estimates and believe Consensus estimates could drop soon as well.”
Micron shares declined 8 percent Friday. The party’s stock was the best-performing chip name in the S&P 500 with a 43 percent earn year to date through Thursday.
Danely said flash tribute represents 31 percent of Micron’s sales and 15 percent of its profit. He notorious flash memory prices fell 12 percent in the company’s most modern quarter after a 3 percent decline the previous quarter.
The analyst mustered his price target to $60 from $55 for Micron shares, representing 2 percent upside to Thursday’s sign.
“We are nervous” about the new price forecast, he wrote.
Micron did not immediately sympathize with to a request for comment.