Chipmaker Micron Technology, Inc. (NASDAQ:MU) is down 0.5% at $41.31 this morning, after an analyst at Citigroup reiterated a brutal bear note. Christopher Danely reaffirmed the brokerage's "sell" rating and $30 price target, stating current inventory levels have reached record levels, leaving the stock at risk for lower earnings per share (EPS) and write-downs. From a long-term perspective, Danely believe MU could reach $60 if its EPS reached $11.74.
Micron Technology has had a rough go of late, with today's bear note surfacing on the heels of last week's Huawei ban drama and the stock's second straight weekly loss. The shares have pulled back to the 40-day moving average, a trendline which helped send MU higher on June 25. Micron stock is clinging to a 30% year-to-date gain.
A majority of analysts remain optimistic toward MU coming into today. Fourteen of 24 sport a "buy" or "strong buy" recommendation, while the remaining 10 carry a "hold" or "strong sell." Echoing this optimism, the stock's average 12-month price target of $47.85 is 15.3% above Friday's close.
Lastly, it looks like Micron stock has a history of making moves bigger than the options market was pricing in. This is based on the security's Schaeffer's Volatility Scorecard (SVS) of 90 out of 100.