Micron slips as Citi cuts revenue, earnings estimates ahead of Q3 earnings
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Micron Technology (NASDAQ:MU) shares slipped on Wednesday as investment firm Citi cut its revenue and earnings estimates on the semiconductor company ahead of third-quarter earnings, noting the "collapsing" dynamic random access memory, or DRAM, market.
Analyst Christopher Danely, who reiterated the firm's buy rating on Micron (MU), but lowered the price target to $85 from $100, pointed out that DRAM pricing is expected to decline until the first-quarter of next year, but that could be mitigated by pre-emptive supply cuts.
"We are lowering our estimates again but reiterate our Buy rating on [Micron] due to attractive valuation and secularly increasing fundamentals through cycles," Danely wrote in a note to clients.
Micron (MU) shares lost nearly 1% to $57.30 in premarket trading.
Danely added that he expects Micron (MU), which reports third-quarter results on June 30, to generate $8.4B in revenue and $2.22 in earnings per share, well below the company's guidance of $8.7B and $2.34 in earnings per share. 
In addition, Danely added that Micron (MU) may guide its next quarter weaker than Wall Street's estimates, with sales up just 1% sequentially to $8.5B and $2.25 in earnings, well below estimates of $9.35B in revenue and $2.39 in earnings per share. 
For full-year 2023, Danely now expects Micron (MU) to generate $33.5B in revenue and $8.79 in earnings per share, down from a prior outlook of $40B and $13.28 in earnings per share.
On Tuesday, investment firm Barclays said weak pricing in both the dynamic random access memory and NAND markets could cause Micron (MU) to miss third-quarter estimates and provide weak guidance.