NEW YORK (
) -- Semiconductor company
was the worst-performing stock in the
The S&P 500 was gaining 14.44 points, or 1.03%, to 1,411.51.
Shares of Micron fell 2.2% to $8.22. The stock was downgraded Sunday by analysts at Oppenheimer and the firm removed its price target.
"If Micron does not get hijacked into buying some or all of Elpida, we think it's on the right path to profitability and on FCF as most of capex spend is done for the year," Oppenheimer analysts wrote in the report. "MU's financial strength has come from cost cutting, i.e., US jobs, and now rescuing Taiwanese and Japanese jobs makes sense, if, and only if, there is help from other stakeholders. If one thinks about it, the stakeholders are the Taiwanese and Japanese governments, PC and handset OEMS including Apple and even Intel, TSMC, and others. We are downgrading Micron and removing our price target until profitability becomes visible."
Micron has an estimated price-to-earnings ratio for next year of 12.78 times; the average for semiconductor companies is 15.71. For comparison,
has a lower forward P/E of 8.81;
forward P/E is 17.61.
Nineteen of the 27 analysts who cover Micron Technology rated it buy. Seven analysts gave the stock a hold rating and one rated it sell.
gives Micron Technology a
with a hold rating. The stock has risen 31% year to date.
-- Written by Alexandra Zendrian
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