Micron Technology Inc. was downgraded at Wedbush Securities, which cited concerns that supply-and-dynamics for dynamic random-access memory (DRAM) isn't likely to improve. Analyst Betsy Van Hees cut her rating to neutral from outperform and slashed her stock price target to $19, which is 12% above Friday's closing price, from $26. Van Hees said industry checks suggest cost cuts won't outpace declines in average selling prices until mid-2016. She expects benefits from PC upgrades and a seasonal uplift in mobile handsets to be more muted than previously anticipated, given an uncertain macroeconomic environment, currency headwinds and increased competition. "While we believe [Micron] is laying the right ground work with capex spend for long-term success, until we see signs that DRAM industry supply/demand environment is stabilizing, shares will likely continue to struggle," Van Hees wrote in a note to clients. The stock, which was little changed in premarket trade, has tumbled 52% year to date through Friday, while the S&P 500 has gained 1.6%.
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