Micron Technology Downgraded to Hold at Deutsche Bank

Deutsche Bank analysts downgraded Micron Technology, Inc. (NASDAQ:MU) to hold from buy and lowered their price target to $55 from $60, noting they are becoming more cautious about the memory market because they think the current downturn will be worse and last longer than previously thought.

On the demand side, weakness in the consumer PC/smartphone market has spread to the enterprise side, and even cloud demand is starting to decline. On the supply side, the analysts give credit to the company for limiting its supply growth, but Samsung's decision to not cut back on production and CAPEX will likely prolong the downturn.

According to the analysts, the company's share price has been relatively stable since it reported earnings in September, but they think investor optimism that the business will soon reach a low point is unfounded.