Citi stays Buy on Micron despite worse than expected guidance

Citi says Micron (MU) reported strong results but guided below the firm’s recently-lowered estimates as the weakness in NAND and excess DRAM inventory in the PC and handset end markets is worse than previewed. However, Citi continues to believe the DRAM inventory correction should finish by the Spring as it has been occurring for several months and DRAM companies are lowering capex and production. It lowered estimates but reiterates a Buy rating and $150 price target on Micron.