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Nomura Securities Analyst Day Recap on SanDisk (SNDK): Well Positioned For Growth And Profitability

February 17, 2012 11:03 AM EST Send to a Friend
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Price: $103.57 +3.34%

Rating Summary:
    22 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 42
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Nomura Securities reiterates a 'Buy' on SanDisk (NASDAQ: SNDK) price target of $65.00.

Analyst, Sidney Ho, said, "SanDisk reiterated its 2012 financial guidance. We believe the guidance is conservative. Our above-consensus estimates for 2012 of $6.6bn/$5.00 are unchanged. Solid state drive (SSD) took the center stage. The company expects SSD revenue to grow to 25% of total sales in 2014, or about $2bn, up from less than $200mn in 2011. Growth will likely be driven by both client and enterprise products. Recent product announcements and SSD-related software acquisitions confirm the company's commitment to the SSD space. As the company continues to focus on system-level offerings and the enterprise market, we see potential for margin expansion. SanDisk's strength lies in its manufacturing technology. The company expanded its NAND scaling roadmap to include a 1Z-nm process in late 2014, which we believe has a cost advantage over other technologies such as 3D NAND from other suppliers. The company also reiterated its capital expansion plan for Fab 5 in 2012. We believe prudent capacity expansion from all suppliers will likely keep industry supply tight in 2H12, leaving room for upside surprises."

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 $48.23 yesterday.




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