Needham
downgrades Micron (NASDAQ:MU) from Strong Buy to Hold after earnings.
Analyst Rajvindra Gill says the firm is concerned demand conditions could worsen and put more pressure on margins.
Gill: "While we are hesitant about downgrading at this valuation level, we believe the overall demand environment will remain murky for at least the next six months and therefore we move to the sidelines."
More action: RBC Capital
downgrades from Outperform to Sector Perform and lowers the price target from $59 to $40, a 17% upside to yesterday's close.
Analyst Amit Daryanani cites inventory and demand risks, node transitions, and operating expense levels. The firm sees "sizable risk" for revenue, gross margins, and EPS reductions for the next two to three quarters.
WSJ's
Heard on the Street column is out negative on MU citing the Q2 revenue guidance, which represents the largest Q/Q drop in a decade at the midpoint, and the FY capex cut that suggests the company doesn't expect things to improve soon.
