Micron Technology Inc. (NASDAQ: MU) recently held its analyst day, and there has been a mixed view on the largest dynamic random-access memory (DRAM) maker. Some analysts have maintained positive ratings, but one firm’s upgrade almost feels like a downgrade, if you just take it on face value.

Wells Fargo’s David Wong raised Micron to Market Perform from Underperform. It is good news that the equivalent of a “sell” rating has been removed, but the firm actually took down its target valuation range and lowered estimates in the call. If you have tracked analyst calls for very long, this is one of those cases where it really does feel like a downgrade.

The reason for the call was that Micron’s stock price has now settled within the Wells Fargo valuation range. Wong thinks that a more realistic view of the improved business conditions in the memory industry has now been incorporated into the stock price.

Falling prices in DRAM and the expectation of higher depreciation from elevated capital spending brought the need to lower earnings expectations. Wong lowered his 2015 GAAP earnings estimate to $2.38 per share from $2.39 previously. That isn’t bad, but the 2016 GAAP earnings estimate was cut to $1.35 per share from a prior $1.65 per share. That is almost a 20% drop.

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Wong reduced Micron’s valuation range to $16 to $19 from a prior $17 to $20, and that is based on 12 to 14 times the 2016 earnings estimate. Despite the formal upgrade, the effective price target has been lowered, and lowered very close to the current share price. Wong said:

The company highlighted its various memory technology efforts in DRAM 3D NAND and new technologies (3D XPoint). Micron presented its capital expenditure plan for 2016, $5.3 billion to 5.8 billion, up sharply from $3.6 to $4.0 billion in 2015, emphasizing the importance of investing in its future.

We believe that the memory industry financial dynamics have improved in recent years. In our view this will lead to improved average profits and profit margin through a cycle. Nevertheless we have been negative on Micron with an Underperform rating in part because we thought that the investment community had an unrealistically optimistic view of how good the long-term DRAM memory pricing and profitability trends might be. Over the last year DRAM prices have corrected significantly, and Micron’s (and Inotera’s) margins have compressed. We think that a far better appreciation of the ongoing risks of the memory business has now been incorporated into Micron’s stock price.

The additional problem, which also feels like more of a downgrade bias, is that the report points out that several significant risks remain in place for Micron’s business and its stock price. These risks include falling DRAM prices, the changing pricing arrangement with Inotera, 20nm transition and 3D NAND technology risk, rising capital spending, the possibility of new memory competition in China, and consensus estimates that Wong believes are too high.

Wells Fargo’s 12 to 14 multiple on expected 2016 earnings is said to be consistent with where Micron has traded at various times in the past. The firm also reminds its investors that Micron’s profitability has gyrated around pricing trends in the past, and those risks are likely to persist.

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Again, this was one of those formal upgrades that just feels like a downgrade. Micron shares hit another 52-week low of $16.13 on Monday. After more than an hour of trading, shares were down 1.8% at $16.65, against a new 52-week range of $16.13 to $36.59.

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