Deutsche Bank analyst Sidney Ho lowered his estimates for Micron Technology to reflect "weak" DRAM pricing trends. However, in a research note titled "DRAM prices worsened, but closer to a trough," the analyst says aggressive capex cuts by memory suppliers combined with a recovery in server demand should lead to a more favorable supply/demand environment by mid-2019. The rebound in Micron shares, which are up 27% year-to-date, may have anticipated some of this recovery, but with the stock currently trading at ~1.4 times book value of $30, the risk/reward remains attractive relative to a five-year median of ~1.7 times book, Ho writes. As such, he maintains a Buy rating on the shares with a $48 price target.