Micron pricing will continue to be challenged, says Piper Sandler

Piper Sandler analyst Harsh Kumar keeps an Underweight rating on Micron Technology with a $45 price target following last night’s fiscal Q2 results. Micron continues to suffer through excess inventory at this time, and although there appears to be a "glimmer of hope in the near future," Piper remains cautious, the analyst tells investors in a research note. The firm says that while bit growth might continue to progress upward, Micron’s pricing will continue to be challenged significantly in the near term. When coupled with inventory write downs, which has hampered gross margins in the quarter and is forecasted to continue to negatively impact margins, a bearish stance is still warranted, says Piper. It would like to see more constructive data points before revisiting its opinion.