As previously reported, Baird analyst Tristan Gerra downgraded Micron two notches, to Underperform from Outperform, as he now models eight consecutive quarters of gross margin and EPS contraction given the continued deterioration in both DRAM and NAND memory pricing. DRAM capacity is expected to increase 10%-15% in each of calendar year 2019 and 2020, and Gerra forecasts 30-35% price reductions in 2019, he tells investors. Meanwhile, the NAND outlook continues to worsen, with contract pricing expected to decline by a mid-teens percentage in each of the next two quarters, Gerra added. Given the pricing and margin concerns, he slashed his price target on Micron shares to $32 from $75.