One top Wall Street firm is getting less bullish on Micron Technology Inc. (NASDAQ: MU) after the stock's stunning performance so far this year.
Morgan Stanley lowered its rating to equal-weight from overweight for the chipmaker, citing the company's fully priced valuation.
"After being bullish on memory for the last two years, we are moving to a neutral stance. DRAM remains strong but looks priced in as MU is very close to our PT," analyst Joseph Moore said in a note to clients Thursday.
"We would rather err on the side of caution in an environment where we can see storm clouds on the horizon."
The company's stock is down $3.07, or 4.9%, to $59.50, in Thursday's trade after the report.
Micron shares are the best-performing chip name in the S&P 500 with a 52% gain year-to-date through Wednesday versus the market's 2% gain.
Moore reiterated his $65.00 price target for Micron shares, representing 4% upside to Wednesday's close.
The analyst is less confident over the strength of the memory market after talking to his corporate sources.
Micron it will hold its fiscal third quarter earnings conference call on Wednesday, June 20. The company claims status as an industry leader in innovative memory and storage solutions.
"Through our global brands — Micron®, Crucial® and Ballistix® — our broad portfolio of high-performance memory and storage technologies, including DRAM, NAND, NOR Flash and 3D XPoint™ memory, is transforming how the world uses information to enrich life."
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