Micron downgraded to Market Perform from Outperform at BMO Capital

BMO Capital analyst Ambrish Srivastava downgraded Micron Technology to Market Perform from Outperform with a price target of $55, down from $60. The shares closed Monday up 32c to $51.15. Spot pricing for DRAM started to roll over the last few months, and research suggests the weakness in spot pricing is likely going to extend into contract pricing soon, Srivastava tells investors in a research note. The analyst believes pricing for DRAM is going to be down quarter-over-quarter for at least for the next two-to-three quarters and also sees weakness extending to the NAND flash market as well. Consensus estimates are not reflective of the weaker pricing environment, says Srivastava, who sees a more balanced risk/reward profile in shares of Micron as a result.