Micron Technology Inc.'s stock slumped 4.3% in midday trade to a 14-month low Monday, after Morgan Stanley downgraded the memory-chip company to the lowest rating, saying research suggests the expected seasonal strength in its business will come later and be weaker than anticipated. The stock was on track to be the biggest-percentage decliner among S&P 500 components on Monday. Analyst Joseph Moore cut his rating to underweight, after being at equal weight since April 8, 2013, and slashed his stock price target to $21 from $30. "While we have been cynical about Micron sustaining 2014 earnings levels going forward, we did expect a sharp rebound in 3Q with the help of Apple [dynamic random access memory] content, which has kept us on the sidelines," Moore wrote in a note to clients. "After doing several channel checks in Taiwan last week, we believe that this seasonal lift is delayed at least until 4Q." The stock has tumbled 31% year to date, while the PHLX Semiconductor Index has gained 3.5% and the S&P 500 has added 1.3%.
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