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Micron to report report and guide below consensus, says Citi

Citi keeps a Buy rating on Micron Technology with a $75 price target ahead of the company’s fiscal Q2 results on March 28. The analyst expects the company to report and guide below consensus estimates along with a large write-down of inventory. Citi expects another lowering of estimates but says its reasons to be positive on the shares remain unchanged. It believes capex and utilization cuts by Micron and Hynix should create a bottom to the DRAM market over the next six months, and says Micron is trading close to a trough valuation.

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