11:41 AM EST, 12/19/2024 (MT Newswires) -- Micron Technology ( MU ) is set to see extended pressure on pricing and gross margins through fiscal Q3 amid NAND headwinds and weaker phone and PC markets, BofA Securities said in a Thursday note.

On Wednesday, the company reported fiscal Q1 non-GAAP earnings of $1.79 per diluted share, swinging from a loss of $0.95 a year earlier, as revenue rose to $8.71 billion from $4.73 billion.

"We were below consensus heading into MU's fiscal Q1 results, but are reducing estimates again as gross margins are expected to stay weak in Q2 and even Q3," said the investment firm. BofA Securities cut its estimate for Micron Technology's ( MU ) fiscal 2025 earnings per share to $6.80 from $7.18.

BofA Securities said inventory levels of PC and phones remain elevated, pressuring prices, while weaker NAND pricing continues to weigh on the company's gross margins, offsetting accretion from its high-bandwidth memory business.

BofA Securities downgraded Micron Technology ( MU ) to neutral from buy, with a lower price target of $110 from $125.

Micron Technology ( MU ) shares were down more than 16% in recent trading.

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