Baird analyst Tristan Gerra maintained an Underperform rating on Micron with a $32 price target following the company's earnings report. In a research note to investors, Gerra says the combination of a much steeper decline in gross margin than previously modeled and the impact of under-utilization changes are changing his gross margin modeling curve, and says that while he is modeling a sequential rebound in gross margin for the November quarter, he sees steady declines in gross margin quarter over quarter throughout fiscal 2020. Gerra also expects the DRAM environment to deteriorate further next year.