UBS Bearish on Memory: Starts Samsung at Sell, Downgrades Qimonda, Cuts Targets on Micron, SanDisk
UBS chip analyst Uche Orji has turned cautious on the memory sector. He says a recent rebound in DRAM ASPs is not likely to be sustainable with slowing demand ahead and an increasing risk of some NAND capacity being flipped over to DRAM production. Orji also remains negative on the NAND flash market, “due to persistent excess supply.”
“While we continue to believe the DRAM industry should see further improvements in demand in [the second half], we also think the fragility and sustainability of the current DRAM sector recovery is once again in focus, given concerns for further global macro economic slowing and the potential for NAND capacity conversion to DRAM,” he writes.