Micron and Western Digital Stocks Are Downgraded on Market Weakness

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Mizuho lowered its target for Western Digital’s stock price to $40 from $62.

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Analysts at Mizuho downgraded shares of Micron Technology and Western Digital as prices of storage chips and devices decline at a steeper pace and key server markets appear weak.

They lowered their price target on shares of Micron (ticker: MU ), a memory-chip company, to $56 from $75 and cut their rating on the stock to Neutral from Buy. Western Digital (WDC), which produces disk drives and flash memory, also went to Neutral from Buy, with the price target dropping from $62 to $40.

The analysts, Vijay Rakesh and David Liu, cited price declines for memory and softer demand in China as reasons for the shares to fall.

“Weak macro, weak consumer demand, high inventory, and continued supply growth imply more downside risk over the next 4-6 months,” the analysts wrote in a note dated Tuesday.

Early Wednesday, Western Digital stock was down 1.2% at $35.11. Micron shares had dropped 2% to $49.76.

Write to brian.swint@dowjones.com

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