Baird Downgrades Micron (MU) Two-Notches to Underperform; Continued Deterioration in DRAM and NAND Pricing

Baird analyst Tristan Gerra downgraded Micron Technology (NASDAQ: MU) from Outperform to Underperform with a price target of $32.00 (from $75.00).

Gerra commented, "Continued deterioration in both DRAM and NAND pricing leads us to model eight consecutive quarters of gross margin and EPS contraction. We model DRAM gross margin erosion from recent 71% peak to 50% in C2H20, driven by channel inventory reductions and capacity increases. NAND outlook continues to worsen, with contract pricing expected to decline mid teens in each of the next two quarters, and spot reaching cost in C2Q19. China is a risk notably for NAND in 2021. Downgrading to Underperform."

For an analyst ratings summary and ratings history on Micron Technology click here. For more ratings news on Micron Technology click here.

Shares of Micron Technology closed at $35.76 yesterday.

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