NEW YORK (TheStreet) -- Micron Technology (MU) - Get Report stock is declining by 2.10% to $10.26 in early-morning trading on Thursday, after a rating downgrade to "neutral" from "outperform" at Macquarie following the company's 2016 second quarter results, which were released after yesterday's market close.
The firm has a $12 price target on the stock, implying a 14.5% upside to Wednesday's closing price.
Although the stock has probably bottomed and the DRAM industry should be able to generate "cross cyclical profitability," shares of the chipmaker lack "any meaningful catalysts" for the next several quarters, the firm contended, MarketWatch reports.
Additionally, Bernstein cut the stock to "market perform" from "outperform" and lowered its price target to $10 from $14.
The firm cited Micron's disappointing guidance and its own expectation for further DRAM pressure given stronger Samsung (SSNLF) competition.
For the most recent quarter, Micron reported a loss of 5 cents per share on revenue of $2.93 billion, compared to analysts' expectations for loss 8 cents per share on revenue of $3.05 billion.
The company has projected a third quarter loss between 5 cents and 12 cents per share on revenue between $2.8 billion and $3.1 billion, while Wall Street is anticipating earnings of 4 cents per share on revenue of $3.2 billion for the quarter.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Micron's strengths such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures are countered by weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
You can view the full analysis from the report here: MU
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.