Micron slips as Deutsche Bank downgrades, citing longer downturn in memory than expected
hapabapa

Micron Technology (NASDAQ:MU) shares slipped nearly 2% in premarket trading on Monday as Deutsche Bank downgraded the memory-focused semiconductor company, citing a longer downturn in the space than previously believed.
Analyst Sidney Ho lowered his rating on Micron (MU) to hold, noting that demand for memory has weakened in the enterprise after previously just being in the consumer space. Ho also noted that cloud demand has started to "weaken."
The analyst also noted that Micron (MU) has taken several actions to limit supply, but Samsung (OTCPK:SSNLF), which competes with Micron in the space, has not, which is likely to "prolong the downturn."
"We believe investor optimism that the business will soon reach a cyclical trough now looks premature," Ho wrote in a note to clients. The analyst added that book value is likely to decline between 5% and 10% over the next few quarters, and with the stock trading at roughly 1.2 times book, the the current risk-reward is "balanced." 
Earlier this month, Micron (MU) CEO Sanjay Mehrotra joined President Joe Biden and several other technology executives at an event at Taiwan Semiconductor's Arizona plant, slated to open in 2024. 
Analysts are largely cautious on Micron (MU). It has a HOLD rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates MU a HOLD.