Piper Jaffray Assumes SanDisk (SNDK) at Overweight on 'Impressive' Q1
- Futures lower on Deutsche Bank concerns
- Oil falls as investors cash in on OPEC deal rally, dollar rises
- Costco Wholesale (COST) Tops Q4 EPS by 4c; Comps Rose 3%
- Elliott Shows 8.1% Stake in Mentor Graphics (MENT) - 13D
- After-Hours Stock Movers 09/29: (MENT) (CEMP) (COST) Higher; (CAMP) (ABUS) Lower (more...)
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.
Shares of SanDisk closed at $75.85 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Imperial Capital Raises Price Target on BlackBerry (BBRY) to $8.50 Following 2Q Report
- CoLucid Pharmaceuticals (CLCD): Notes From KOL Call - Piper Jaffray
- Wells Fargo Upgrades Nimble Storage (NMBL) to Outperform
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change, New Coverage
Related EntitiesPiper Jaffray, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!