S&P cut their rating Micron Technology (MU) on Friday to Hold from Buy, citing reduced expecations for DRAM memory chip prices in 2010. They reduced earnings per share (EPS) forecast for the August 2010 fiscal year to 76 cents, from 84 cents, and cut their target price to $11, from $13. S&P said “Although we think healthy PC demand will continue to support memory demand and shipments this year, we are cutting back our second half DRAM revenue estimates based on our view of increasing supply from leading competitors and lower ASPs."
Micron finished Friday at $8.70, having slide from close to $11 in the last 2 weeks as worries grow about a potential ramp up in DRAM producton from Samsung. The position in Micron is around a $1 down from its buy point, but will hold for now.