As you would expect many Brokerage Firms cut their price targets on Micron following yesterday's earnings release but if you give any credence to their coverage and new price targets you have to conclude that at this point the risk is to the upside. Despite the earnings miss and revised guidance I'm finding the stock still has a lot of support on the street. As an example, Piper Jaffray reiterates an Outperform rating while reducing the price target from 34 to 30, Cowan reiterates Overweight with price target of $30, and Jeffries reiterates Buy rating while reducing price target from 40 to 36. Other price target revisions this morning include JP Morgan 33 to 29, Pacific Crest from 32 to 26, Raymond James 40 to 38, Stifel Nicolaus from 41 to 34, Mizuho 37 to 39 and Wedbush Morgan from 31 to 26.
The lowest price target mentioned, 26, is approximately 30% above where the stock is trading in the pre-market. I know there are other firms on the Street that aren't quite that optimistic but in-as-much as I've always found Jeffries and Raymond James to be the most reliable I'm willing to give this one a shot. I took a position in the pre-market and with a pretty tight stop, I actually like my chances!