Deutsche Bank continues to view degraded pricing dynamics in DRAM and NAND as the biggest variable to Micron Technology’s performance in 2023. The firm now expects the company’s fiscal Q2 and Q3 to remain challenging, saying inventory adjustments are well underway at enterprise and cloud customers while latest industry checks suggest selling price erosion "remains severe." In addition, unit volume data points from peers suggest Micron’s underlying assumptions of a demand recovery toward mid-2023 "could be too optimistic," the analyst tells investors in a research note. The firm sees a balanced risk/reward at current share levels and keeps a Hold rating on Micron with a $55 price target.
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