Investitute co-founder and “Halftime Report” trader Pete Najarian owns Micron and is sticking with it because he believes the pricing pressure thesis is already reflected in the stock’s price, and also because he likes the company’s management team.
“We all know with DRAM and NAND there’s going to be some pricing pressure…But I think the management team you’ve got right now at Micron is different than it has been in past years. I think going forward they’re navigating this better,” he said on Tuesday’s “Halftime Report.” He also disagreed with the analyst cutting his target by more than 50%, saying it felt “a little extreme.”
Micron soared 87.6% in 2017, but so far is down 12% for the year. And while Najarian remains bullish on Micron for the long-term he’s not adding to his position just yet. He noted that the stock “could go down a little further” but that he thinks “we’re getting close to a bottom here.”
Micron’s move lower follows a broader sell-off in the chip space as investors worry about potential oversupply. The SMH, an ETF that tracks the sector, is just about in bear market territory, falling 19.8% from its 52-week high of $198.84 on March 13.