Deutsche Bank downgraded Micron to Hold from Buy amid expectations for lower memory pricing due to supply-demand mismatch. Meanwhile, Deutsche left the stock's price target unchanged at $48 (1% downside potential).Deutsche Bank analyst Sidney Ho wrote in a note to investors on Wednesday that he expects “consensus estimates” for Micron (MU) to “come down sharply from current levels.” Ho stated that “his extensive checks with the supply chain following Western Digital's (WDC) recent lackluster guidance left him feeling more negative on the supply-demand balance for the memory sector in the next several quarters. The added that, “Inventory build-up at cloud data center customers looks worse than he had anticipated, while demand from other end markets is weakening.”Micron has been benefiting from stellar memory chip demand from data center operators as coronavirus-led remote working and online learning necessity has spurred demand for cloud storage. In the last reported quarter, the company’s revenues increased by 13.6% to $5.32 billion year-over-year and beat analysts’ expectations of $5.31 billion.Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 16 Buys, 8 Holds, and 1 Sell. The average price target of $64.29 implies upside potential of about 33%. (See MU stock analysis on TipRanks).Related Links: Despite Lowering Estimates, Micron Is Still a Sound Investment, Says 5-Star Analyst Upcoming Tailwinds Will Push Micron Stock Forward, Says 5-Star Analyst Gabelli Cuts Zoetis To Hold On Valuation More recent articles from Smarter Analyst: * Argentina, Mexico To Produce AstraZeneca’s Covid-19 Vaccine Candidate * Piper Sandler Lifts NIO’s PT After 'Solid' 2Q Results * Facebook, Snap Held Talks To Buy TikTok Rival Dubsmash - Report * Cisco Drops 6% On Disappointing 1Q Profit Guidance As Spending Slows
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