Needham & Company Upgrades SanDisk (SNDK) to Strong Buy, Sees 40%+ Upside

October 17, 2013 7:52 AM EDT
Get Alerts SNDK Hot Sheet
Price: $76.18 --0%

Rating Summary:
    13 Buy, 29 Hold, 4 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company analyst Rajvindra Gill upgraded SanDisk (NASDAQ: SNDK) from Buy to Strong Buy with a price target of $90.00 (from $80.00).

"SNDK continues to fire on all cylinders, having reported record 3Q13 results which topped all ests. 4Q revenue and gross margin guidance also topped ests, as NAND supply/demand dynamics remain healthy," Gill comments. "SNDK should continue to benefit from an underlying favorable mix shift toward SSDs (specifically enterprise) and embedded, along with improving GM within each of its product lines. Additionally, SNDK plans to use 70% of its FCF to repurchase shares; thus we believe we could see $0.20-0.30 EPS upside to our ests just on stock buybacks alone. We are upgrading SNDK to a Strong Buy from a Buy, and raising our PT to $90 from $80, which would represent 40%+ upside from current levels."

For an analyst ratings summary and ratings history on SanDisk click here. For more ratings news on SanDisk click here.

Shares of SanDisk closed at $62.94 yesterday.

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