While a weak guidance was mostly anticipated by investors, the surprise in last night's earnings report came from Micron's decision to lower wafer starts and capex, which should help the industry return to supply-demand balance sooner, Deutsche Bank analyst Sidney Ho tells investors in a research note. While the analyst has doubt about the strength of the recovery in the second half of 2019, especially given the high inventory levels in the supply chain, he believes memory suppliers are demonstrating more discipline in this cycle. Micron should be very close to the trough, and the combination of demand recovery, supply cuts and inventory depletion should drive a "healthier market" in the second half of 2019, Ho says in a post-earnings research note. He believes the company's risk/reward profile is attractive and reiterates a Buy rating on the shares with a $48 price target.

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here