UBS Warburg

slashed its revenue and earnings estimates through 2002 for

Micron Technology

(MU) - Get Report

, citing further declines in DRAM pricing, the company's shrinking capital plan and ongoing softness in PC-related markets.

But investors shrugged off the move and recently sent Micron higher by $2.77, or 7%, to $42.19 on the

New York Stock Exchange

.

UBS analyst David Wong cut his 2001 revenue estimate to $6.7 billion from $7.8 billion, and lowered his earnings estimate to $1.25 a share from $2.56. For 2002, the analyst now sees revenue of $10.3 billion, down from a previous estimate of $12.3 billion. Wong forecast earnings of $3.60 a share, down from the old projection of $4.68 a share.

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According to a poll by

First Call/Thomson Financial

, analysts on average expect 2001 earnings of $1.56 a share, down from $2.52 a share in 2000, and earnings of $2.81 a share in 2002. Analysts see 2001 revenue of $6.7 billion, compared with 2000 revenue of $7.3 billion. The consensus top line estimate for 2002 is $9.9 billion.

Wong also lowered his second-quarter revenue estimate to $1.4 billion from $1.5 billion and his EPS estimate to 2 cents from 31 cents "as a result of a substantial change in our estimate of corporate average gross margin," Wong said. Wall Street expects second-quarter earnings of 13 cents a share, compared with 29 cents a share in the same period last year.

Wong maintained his hold rating on Micron's shares and said, "there is long-term value in the stock, as we believe that Micron is a cost and technology leader."

Merrill Lynch

blazed the trail when it trimmed its 2001 estimates for the Boise, Idaho, memory chipmaker last week. In January,

Prudential Securities

raised its rating on Micron to strong buy from accumulate.