Summit downgrades Micron to hold, UBS cuts PT
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Summit Insights Group downgraded Micron Technology (NASDAQ:MU) while UBS cut its price target on the stock, which has seen around -6% decline today and -38.28% YTD.
Summit downgraded Micron to hold from buy, with analyst KinNgai Chan saying "We no longer expect the memory market dynamics to turn favorable in H2/2022. In addition to seeing lower-than-expected demand in the second half of the year, MU could also see gross-margin headwinds."

Chan also noted "continued sluggishness" in the smartphone market and "continued decline in the PC client demand." Summit's hold rating is in contrast with SA's quant rating of a strong buy.
UBS was more positive than Summit, lowering its price target from $120 to $115 but maintaining its buy rating. Analysts behind the price target cut said that "concerns around consumer demand" have pushed the stock down, but Micron (MU) is still positioned well enough to benefit from strong pricing support heading into 2023 as "industry growth in bit supply is set to compress significantly".
UBS has lowered its PC and smartphone forecasts for 2022 and 2023 but maintained its server estimates, suggesting demand should be buoyed by cloud as new server platforms with bigger memory ramp up in 2023.