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Fly News Breaks for February 25, 2020
MU, SIMO
Feb 25, 2020 | 06:20 EDT
BofA analyst Simon Woo double downgraded Silicon Motion Technology (SIMO) to Underperform from Buy with a $40 price target. The analyst, who does not doubt a bottoming for memory in Q1, is concerned about earnings misses or guidance cuts for the March quarter. Memory stocks outperformed in 2019 and year-to-date in 2020, but consensus expectations are "too bullish" for Q2 and the second half of 2020, Woo tells investors in a research note. The analyst does not see a strong earnings turnaround for the memory names from Q2 and Q3 as consensus expectations are embedding. Woo this morning also downgraded Micron Technology (MU) for a similar rationale.