Shares of Micron Technology (MU - Get Report) traded lower on Friday after an analyst at J.P. Morgan slashed his price target and earnings estimates for the memory chipmaker on expectations that the U.S. government's ban on doing business with Huawei and weak DRAM pricing will cut into the company's profits.
Micron Technology stock was down 1.98% at $33.48 in trading on the New York Stock Exchange after J.P. Morgan analyst Harlan Sur reiterated his overweight rating on the company's stock but cut his price target to $50 from $64.
In a research note to clients, Sur said his changes were "primarily the result of the components bans to Huawei (13% customer during Micron's F1H19), worse-than-anticipated DRAM pricing and expectations of a slower recovery as we look to the back half of this year and into next year on macro uncertainty/trade tensions."
Huawei, the world's biggest telecom equipment maker, in May was placed on the U.S. Commerce Department's "Entity List" -- a move that prevents it from acquiring components and technology from American companies without prior government approval.
The move has had a negative impact on American semiconductor and other telecom components makers, with analysts regrouping on their outlooks and expectations for the sector.
Sur also lowered his fiscal 2019 per-share estimate to $5.64 from $6.19, and slashed his fiscal 2020 per-share forecast to $1.21 from $3.90.
Analysts polled by FactSet, on average, are expecting earnings of $6.14 a share for this fiscal year and $3.64 for fiscal 2020.