Shares of Micron Technology Inc. MU, -3.95% are down 3.8% in Friday morning trading, following the company's fiscal fourth-quarter earnings report during which it reported better-than-expected results but delivered a disappointing outlook. "While softening DRAM demand from select hyperscale customers was well known coming into earnings, negative implications from tariffs (weighing on gross margins by 50 to 100 basis points) and CPU shortages (headwind to DRAM demand) were not," wrote Evercore ISI analyst C.J. Muse, who has an outperform rating and $80 target on the stock. "Obviously, the debate as to whether this time is different or not different for DRAM and Micron will continue, but with DRAM pricing likely heading lower for the next few Qs, an inflection for shares could take until 2Q19 when we see a slowing second derivative of DRAM ASP declines." Rosenblatt Securities analyst Hans Mosesmann said he sees a buying opportunity amid Friday's selloff. "The bear case-based structural collapse in pricing and/or multi-year over-supply impacting the Micron business model is, in our view, untenable given supply dynamics for 2019 (fewer bits per node transitions and CapEx discipline), and healthy memory content growth," he said. Mosesmann lowered his price target to $110 from $120 but kept his buy rating. Shares are up 23% over the past 12 months, while the S&P 500 SPX, +0.10% has gained 18%.
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