KeyBanc ‘disappointed’ with Micron results but stays Overweight

KeyBanc keeps an Overweight rating on Micron (MU) with a $135 price target following last night’s fiscal Q1 results. The company reported in line results but guided Q2 meaningfully below expectations, the analyst tells investors in a research note. The firm says the weak outlook was attributed to a pause in demand in data center solid-state drives, slower than expected inventory digestion in consumer, and industry oversupply of NAND. KeyBanc is “disappointed” in the results and lowered estimates, but it encouraged by the progress and ramp of HBM3e and long-term secular industry tailwinds for Micron.