Piper Jaffray Assumes SanDisk (SNDK) at Overweight on 'Impressive' Q1

April 17, 2014 6:34 AM EDT Send to a Friend
Get Alerts SNDK Hot Sheet
Price: $88.76 +0.34%

Rating Summary:
    23 Buy, 11 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
Trade SNDK Now!
Join SI Premium – FREE

Piper Jaffray assomes coverage on SanDisk (NASDAQ: SNDK) with a Overweight rating and takes its price target from $81 to $85 following "impressive" Q1 results after the close with results driven by SSD.

Analyst Ruben Roy comments, "SNDK reported 1Q14 revenues of $1.5bn and non-GAAP EPS of $1.44, beating consensus of $1.5bn and $1.26. Non-GAAP GM improved 25bps q/q to 51.2% on favorable mix of higher margin SSD revenue which grew to 28% of revenue and was up 17% q/q. SNDK reiterated its expectation for 40% y/y industry bit growth in 2014 while its own growth is expected to be 25-35% y/y. The company also reiterated its FY14 revenue guidance of $6.4-$6.8bn, but now expects non-GAAP GM at 47-49% (vs. 45-48% previously) due to better than expected product mix due to sales of SSDs which are expected to comprise 25% of FY14 revenues. We update our CY15 estimates, taking into account higher GM expectations as we estimate 100bps improvement y/y, which increases earnings power."

The firm lifts FY 2014 EPS from $5.50 to $5.73 and FY 2015 EPS from $6.25 to $6.53.

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 $75.85 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, New Coverage

Related Entities

Piper Jaffray, Earnings

Add Your Comment